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Aviation History
2004
2004-09 - 1334.PDF
HEADLINES AIR TRANSPORT JUSTIN WASTNAGE / LONDON Europe moves to plug insurance gap Nations meet to work out details of war-risk scheme Experts from several European countries are meeting in Brussels this week to hammer out the details of a government-backed war-risk liability insurance scheme to ensure airlines are fully covered against chemical or biological ter rorist attacks. Many airline insurance contracts are due for renewal in the coming months and the aviation executive committee of Lloyd's Aviation Underwriters Association is under stood to be urging its members to withdraw cover for non-conven tional war risks, based on a higher perceived threat of such an attack. Many European Union countries fear their flag carriers could be grounded if war-risk exemptions are put in place, and have called on the European Commission to host crisis talks to co-ordinate emer gency cover, similar to the EC- crafted temporary guarantees scheme following the 11 September 2001 attacks. The EC says the meeting is "to evaluate the consequence on the air transport industry of serious attacks", adding that member states have requested the meeting. The Association of European Airlines (AEA) says it is urging mem- AIR TRANSPORT 7 Concern on countermeasures Aviation lawyers are voicing concerns that immature missile countermea sures technology could leave airlines exposed to liability. Speaking at the Flight International-sponsored Tangent Link Protection of Flight for Civil Aircraft conference held at London Heathrow airport last week, Darcy Beamer-Downie, legal counsel at aviation law firm Beaumont and Son, said the "all necessary measures taken" defence being used by Sibir Airlines will no longer be available to airlines once a global standard for coun termeasures is defined. A Sibir Tupolev Tu-154 was accidently shot down over the Black Sea in October 2001 by a missile fired by the Ukrainian mili tary, killing all 78 people on board. Sibir is arguing that as its aircraft was flying at the correct altitude and heading, and that the area in which it was shot down was not a known con flict area, it complied with International Civil Aviation Organisation rules on taking all necessary measures to avoid loss of the aircraft, and is therefore not liable. Beamer-Downie expects this get-out to be nullified once counter- measures such as flares or lasers to combat man-portable anti-aircraft missiles become standard. "If defences exist, then the airline could be proved to be negligent, especially once a standard is reached," she says. ber states to "take the topic seri ously. Our viewpoint is that govern ments should step in to provide insurance where there is no mar ket." Insurers are understood to be worried about the risk exposure that would result from an airborne attack using chemical, radiological or biological agents. Airlines are bound by EC law to have insurance for every eventuality, and insurers' reluctance to offer cover against potential future tenorist methods of attack may leave airlines in breach of their air operator's certificates. John Balfour, partner at aviation law firm Beaumont and Son, says: "Read literally, mandatory airline insurance requirements don't allow for any exclusions, despite exclu sions always being part of policies in practice." Airlines are also beginning to question the value of aviation insur ance. Speaking at the seventh Inter national Aviation Conference, host ed by Beaumont and its French partner firm Cabinet Garnault, Ro bert Webb, general counsel for Bri tish Airways, said: "Our premiums have doubled since 9/11, but with the exemptions the insurers are try ing to introduce, we are beginning to question the value of such cover." Briefing Air Nostrum orders 20 more CRJs FARNBOROUGH FIRST NEWS Air Nostrum has ordered another20 Bombardier CRJ200s in a $500 million deal that will lift the Spanish regional carrier's total fleet of the 50-seat type to 51 aircraft. The Iberia regional partner currently operates 25 CRJ200s from an earlier order for 31. It also flies 19 50-seat Dash 8 Q300s and with the new order becomes Europe's biggest customer for Bombardier regional aircraft. Honeywell to provide 7E7 fly by wire SYSTEMS Honeywell has been selected to provide the fly-by-wire system and automatic flight-control system for the Boeing 7E7. BAE Systems, which supplies the 777's digital flight-control system, is believed to have been a bidder. Honeywell has already been selected to provide the 7E7's navigation package and crew information system/management system. Future of Symphony secured RELAUNCH The future production of the Symphony family of high-wing piston singles has been secured following a successful bid for the aircraft's two production facilities. German manufacturer Ostmecklenburgische Flugzeugbau (OMF) went into bankruptcy protection in December last year, with its Canadian subsidiary OMF Aircraft placed into receivership by the Quebec government's investment arm SGF, and later reformed as Symphony Aircraft Industries (Flight International, 20-27 April). OMF's assets have now been acquired by OMF Flugzeugwerke, which plans to continue certification work on the four-seat Symphony 250 and development work on the two-seat diesel-engined 135D. Kelly at the helm of Southwest Airlines RESIGNATION Gary Kelly has taken the helm at Southwest Airlines, following James Parker's immediate and unexpected resignation as vice- chairman and chief executive on 15 July. Kelly was formerly the US low-cost carrier's executive vice-president and chief financial officer. Parker, who cites "a combination of reasons" for his decision, notes that his three-year contract with Southwest had come to an end and that it was "a logical time to make a change, and that change is best made swiftly". The airline recently offered flight attendants an average pay increase of 31%. Aura satellite launched by Boeing Delta II LAUNCH NASA's Northrop Grumman-built Aura satellite was launched by Boeing Delta II on 15 July, joining the Aqua and Terra Earth observing system (EOS) spacecraft. Aura is expected to begin measuring atmospheric gases from its 705km (440 mile)-high Sun-synchronous orbit within three months. Launch of NASA's Mercury probe, Messenger, has been scheduled for 2 August. The radar-imaging craft will not enter orbit until March 2011. Passenger data rules may get swift review LEGISLATION Airline groups were celebrating last week after the UK High Court requested an expeditious hearing by the European Court of Justice (ECJ) on the case against the new EU regulation on passenger compensation and assistance. The request means the Brussels-based ECJ should review the legality of the measures before they are enforced next year, subject to the court accepting the UK judges' sense of urgency. Niche buy-outs on the rise ACQUISITIONS Weapon and space systems specialist ATK is to acquire the PSI Group, a US manufacturer of satellite components and propellant tanks with 350 employees and annual sales of $100 million, boosting its bid to become a spacecraft integrator. Meanwhile, Teledyne Technologies is to acquire Celeritek's defence-electronics business, which makes microwave components for electronic warfare and radar applications, for $33 million, while BAE Systems North America is to acquire small signal- processing specialist Practical Imagineering for $8.3 million in cash. www.fliqhtinternational.com FLIGHT INTERNATIONAL 20-26 JULY 2004 7
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