Faced with a potential four-fold increase in their insurance premiums for 2002 and future years, largely due to war risk following September 11, the IATA airlines resolved to seek a global solution to the problem, on the final day of their 58th Annual General Meeting and World Air Transport Summit in Shanghai, 4 June.
They affirmed their strong support for the global war risk solution developed by the Special Group of the International Civil Aviation Organization (ICAO) and requested governments to support the scheme.
- ICAO proposes the setting up of a “not for profit” new insurance company which would seek finance from the world market and assume global risks.
- The airlines asked ICAO to initiate measures to establish an international convention to limit third party risk war risk liability of international airlines.
In a further Resolution, IATA airlines asked states to ensure that security measures are co-ordinated internationally, without disrupting air transport and recognising that the cost of enhanced security programmes are a state responsibility; the AGM approved the IATA Recommended Security Standards and asked all Members to ensure that effective airline security programmes are in place, consistent both with the IATA Standards and the ICAO Annex 17 requirements.
Finally, the AGM expressed its appreciation to those infrastructure service providers who have frozen, reduced or waived their user charges since September 11, asked all service providers to review their costs, and requested States to set up independent “watch dogs” to review all user charges - and allow service providers to reduce charges in response to customer requirements.