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Old 9th Feb 2016, 11:04
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Methersgate
 
Join Date: Jan 2013
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On the question of repairs...

I'm slightly rusty and stand to be corrected here but I think this is right:

From an insurance point of view, aircraft are treated much like ships. The policy is an Agreed Value Policy (not like your car). The OEM doesn't really have a say in whether the airframe is repaired or is treated as a Constructive Total Loss ("CTL") - which is what happens when the estimated cost of repair gets close to the agreed value, and there is a risk that it might exceed it - the matter is negotiated between the underwriters and the insured, which is when your broker really earns his pay, but the OEM can, and occasionally does, offer to repair at a figure below the hull value. A CTL means that the hull underwriters pay the agreed value and leave the insured owner to dispose of the remains.

In this case there is another question - if the loss was due to a bomb, it is a War Peril and as such the War Risks policy pays and the hull loss does not figure on the OEM's record of losses.

My hunch is that this aircraft will be a CTL due to the difficulty of making temporary repairs at Mogadishu - an airport that I last flew out of aboard an Aden Airways DC3...

Another case of a bomb in the lifejacket pouch (post 51) was the PAL 747 - PR 434 - in 1994 - one pax lost, aircraft diverted and landed.

Last edited by Methersgate; 9th Feb 2016 at 12:53.
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