No. H079/02For release - July 18, 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 was announced September 22, 2001. It was extended, and will expire July 19, 2002. Under this extension, the indemnity program will be in effect from July 20, 2002 until September 17, 2002.
"The Government of Canada is following the efforts of the International Civil Aviation Organization (ICAO), and is also participating in discussions to establish a multilateral cooperative mechanism that will provide adequate protection and, most importantly, stability in aviation war risk liability coverage," said Mr. Collenette.
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 that were available before September 11, 2001. This 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.
"We are intervening in the insurance market on a temporary basis," added Mr. Collenette. "We continue to seek permanent solutions, and are committed to working with industry stakeholders and our partners from other countries for this purpose."
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Contact:
Vera HoliadCommunications, Ottawa(613) 993-6896
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