IATA SEEKS SOLUTIONS FOR WAR RISK INSURANCE PROBLEM

IATA SEEKS SOLUTIONS FOR WAR RISK INSURANCE PROBLEM    Airlines of the International Air Transport Association, facing a four-fold increase in their insurance premiums for 2002 and ensuing years, vowed to find a global solution to the problem.
   The airlines, at IATA's annual general meeting and World Air Transport Summit in Shanghai Tuesday, voiced strong support for the global war risk solution developed by the special group of the International Civil Aviation Organization. The ICAO solution proposes to set up a 'not-for-profit' insurance company that 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 war risk liability of international airlines.
   In a resolution, the IATA airlines asked states to ensure that security measures are coordinated internationally, without disrupting air transport and recognizing that the cost of enhanced security programs are a state responsibility.
   Also at the general meeting, IATA's Recommended Security Standards were approved. The organization also asked all members to ensure that effective airline security programs are in place, consistent with IATA standards and the ICAO Annex 17 requirements.