Insurance and Risk Manangement Committee News
Determination - Air Carrier Insurance
The 6th Circuit has issued an opinion that discusses an FAA decision regarding the liability insurance requirements an airport may require of an air carrier, including discussion regarding the downgrading of an airfield to a Class IV Airport Operating Certificate. The FAA had determined that an airport requirement of $20 million is reasonable for scheduled air carrier operations with 20 seat aircraft but is not reasonable for aircraft with 9 seats.
Flamingo Express, Inc. v. FAA (6th Circuit; 08/08/08; No. 07-4226). In a complaint filed with the FAA by the operator of an air service alleging that a city had violated its obligations under federal law by, among other things, failing to approve an application and requiring that petitioner obtain unreasonably high liability insurance coverage, dismissal of the complaint is affirmed where the city did not violate its federal obligations.
The read the referenced Director’s Determination, please click here.
FindLaw Link: http://caselaw.lp.findlaw.com/data2/circs/6th/074226p.pdf
6th Circuit Link: http://www.ca6.uscourts.gov/opinions.pdf/08a0280p-06.pdf
Aviation War Risk Insurance Program Launched
The Federal Aviation Administration (FAA) Aviation Insurance Program provides products that address the insurance needs of the U.S. domestic airline industry not adequately met by the commercial insurance market. Currently, the FAA is providing war risk hull loss and passenger, crew, and third-party liability insurance.
View more information on this program.
Terrorism Risk Insurance Program Expires
On Dec. 22, 2005, President Bush signed into law the Terrorism Risk Insurance Extension Act of 2005, which extends TRIA through Dec. 31, 2007. The law extends the temporary federal Terrorism Insurance Program that provides for a transparent system of shared public and private compensation for insured losses resulting from acts of terrorism.
View more information on this program, including announcements of all rulemakings, interpretive guidance, and requests for public comments.
Safety Management Systems Detects Safety Flaws for Airport Operators
The application of a systematic, proactive, and well-defined safety program allows an organization producing a product or service to strike a realistic and efficient balance between safety and production.
The forecast growth in air transportation will require new measures and a greater effort from all aviation producers—including airport operators—to achieve a continuing improvement in the level of aviation safety. The use of Safety Management Systems (SMS) at airports can contribute to this effort by increasing the likelihood that operators will detect and correct safety problems before those problems result in an aircraft accident or incident.
The FAA supports harmonization of international standards and has worked to make U.S. aviation safety regulations consistent with ICAO standards and recommended practices.