PPRuNe Forums - View Single Post - Airlines to be Grounded Over Changes in Insurance Rules?
Old 23rd Sep 2001, 19:21
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411A
 
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You can now expect an increase in company-owned and time-share exec jets (for those companies that can afford same, in the US anyway) as a way around security concerns as these aircraft are not required to carry the very high third party insurance cover required of Bizjet charter AOC operators. Here in the USA, the insurance problem appears to have been solved, at least in the short term. Longer term it will have a profound effect on the bottom line of ALL airlines and bizjet charter operators. Suspect that a few airlines will not survive to have a bottom line at all, ala Midway-style.
Those that do not have an understanding of the insurance business had best keep it that way, least they have many sleepless nights.
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