No. H009/02For release - February 1, 2002
OTTAWA — Transport Minister David Collenette today announced that the Government of Canada will extend its indemnification for third-party aviation war risk liability for essential aviation service operators in Canada.
The initial provision of an indemnity for a period of 90 days was announced September 22, 2001, and expired December 21, 2001. A 45-day extension took effect December 22, 2001, and will expire February 4, 2002. The Government of Canada is again extending the indemnity, on the same terms and conditions for a period of 45 days, until March 21, 2002.
"Since the previous extension, the insurance market has not yet recovered sufficiently to provide commercially acceptable coverage. The Government of Canada will continue to monitor efforts in the aviation industry to develop a longer-term solution, and will consider the need for further support after the current indemnity expires on March 21, 2002," said Mr. Collenette. "However, the government's intervention in the insurance market is temporary, and industry stakeholders must continue to work towards a longer-term commercial solution."
The Government of Canada is responding, as are governments of other countries, to the decision by international insurers to withdraw previous levels of third-party aviation war risk liability coverage which were available before September 11, 2001. This offer will apply to Canadian air carriers, airports, NAV CANADA, the Air Transport Security Corporation and other essential service providers at airports, such as ground handlers and re-fuellers. It applies more specifically to:
those entities that already carried such coverage at the time of cancellation; and
only to the limit of the amount covered under the insurance policy immediately before the effective cancellation time, less whatever coverage is commercially available during the period of extension.
"It is essential for Canadians to know that this situation does not affect the safe operation of the air transportation system in any way," added Mr. Collenette.
– 30 –
Contact:
Anthony PolciDirector of CommunicationsOffice of the Minister, Ottawa(613) 991-0700
Transport Canada is online at www.tc.gc.ca. Subscribe to news releases and speeches at www.tc.gc.ca/e-news and keep up-to-date on the latest from Transport Canada.
This news release may be made available in alternative formats for persons with visual disabilities.
