MUMBAI: The aviation insurance market, shaken by a $60bn beating following the September
11 terrorist attacks, has begun its slow journey back to normalcy.
Insurance rates have started softening and premiums have come down by almost 20% in '03,
according to Ajay Shukla, vice-president Aon-Global Insurance. Mr Shukla was speaking at a
function to mark the 99th birth anniversary of JRD Tata. The losses incurred after 9/11
shook the world insurance market and changed the insurance philosophy of the underwriters.
The immediate impact was higher premium rates. However, the focus is now on property
insurance rather than casualty, he said. The global
industry is also bracing itself to further liability claims from possible litigation on
tobacco claims, DVT (deep vein thrombosis- where blood clots arising from inadequate
circulation during long flights have known to cause passenger deaths), asbestosis and even
pollution liabilities. The JRD Tata Foundation had organised a technical session on the
'Current state of the airline industry.'
Speaking on the occasion, Air-India's deputy commercial
director, (training), Joan Manohar, argued that open skies may not be the correct policy
in all environments. She said the time is not yet ripe for a global multi-lateral
agreement for air-traffic rights.
Elaborating on the topic, `Why not open skies,' she argued
that air agreements must allow individual members to pursue the pace of liberalisation
that they are comfortable with. For open skies to be truly operative, we would need a
level playing field for all operators, unlimited infrastructure and a monitoring agency
backed by an effective competition policy, she said. Also speaking on the occasion, Boeing
India president Suvendoo Ray highlighted the US manufacturer's future aircraft
technologies. The new e-enabling systems will change the global air transport system, he
said. The high band-width applications will allow better passenger service and more air to
ground communication. It will also increase safety and efficiency by providing on-line
information on weather conditions to the pilot, and also automatic fault reporting and
predictive maintenance in-flight, he said.
Many of these Technolgies will be incorporated in Boeing's
new project, the 7E7, which is now on the drawing board. The 'E' is for economy and Boeing
claims the new aircraft, that is designed for point-to-point services, will improve
efficiencies by almost 10% compared to the existing aircraft.
Commenting on Boeing's plan for a supersonic aircraft, the
Sonic Cruiser, Mr Ray said the aircraft project was dropped after potential customers (the
airlines) said they preferred economy over speed.
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