Airborne safety!

Aviation safety has been at the head of the EU Commission's transport policy for a long time. Recognising that transport is vital to unite markets and people, the EU has worked to promote safety in the aviation sector, thereby increasing mobility and...

Aviation safety has been at the head of the EU Commission's transport policy for a long time. Recognising that transport is vital to unite markets and people, the EU has worked to promote safety in the aviation sector, thereby increasing mobility and enhancing economic growth.

Aviation safety became a greater concern to the EU after the terrorist attacks in the US on 9/11, and since then the Commission has taken it upon itself to ensure a high uniform level of aviation safety in the EU.

Indeed, in 2004, the EU Parliament and Council adopted a regulation on insurance requirements for air carriers and aircraft operators. This regulation, which has automatic application in all the EU member states, aims to ensure a proper minimum level of insurance to cover liability of air carriers in respect of passengers, baggage, cargo and third parties. It applies to all aircraft operators flying within, into, out of or over the territory of an EU member state and requiring that both commercial air carriers and general aviation aircraft operators be insured so as to cover the risks associated with aviation-specific liability, including terrorism or hijacking.

The regulation stipulates a minimum insurance cover for liability in respect of passengers, baggage, cargo and third parties, thus establishing a level playing field for all European and third-country aircraft operators when flying within, to or from the EU. This minimum insurance cover

is calculated according to an aircraft's maximum take-off weight. However, the insurance needs to cover in all cases the maximum number of passenger seats in an aircraft regardless of whether or not they are occupied for any given flight.

Four years down the line from the entry into force of this regulation, the Commission conducted consultation with stakeholders and interested parties and issued a report on the way the regulation is operating in April 2008.

Since the introduction of the regulation, harmonised passenger protection has increased. Harmonisation has been achieved insofar as the amount of insurance cover is concerned.

However, there are currently no harmonised rules at EU level on the way liability for third-party damage is calculated.

The EU member states vary from applying liability for negligence or wrongful behaviour, to others applying the principle of strict liability, which imposes a higher degree of diligence on aircraft operators than the normal degree of diligence. During the consultation process, some stakeholders and member states have aired their views in favour of establishing harmonised third-party liability rules. This would ensure a level playing field for airlines as well as security for passengers flying from one state to another.

The majority of airline companies contended that they should not be forced to take out insurance policy to cover risks relating to acts of war or terrorism. They claimed that these risks should be borne by states and not by aircraft operators. The Commission however did not deem it fit to exempt air carriers from passenger liability in the event of terrorist acts and therefore airline companies must insure against acts of terrorism when flying over the EU.

No airline is allowed to fly over the EU unless its insurance policy covers the minimum requirements set by the regulation. They could also face the withdrawal of their operating licence as well as criminal prosecution. Passengers therefore can travel safely over the EU in the knowledge that risks associated with flying are appropriately covered.

• Dr Grech is an associate with Guido de Marco & Associates and heads it European law division.

Sign up to our free newsletters

Get the best updates straight to your inbox:

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.