After being forced into retirement at age 60, some former airline pilots turn to corporate aviation to continue their flying careers. It can become a problem for operators to obtain hull and liability coverage when these older corporate pilots reach age 70.
Various aviation insurance professionals seem to agree that the overall market has stabilized with premiums still significantly higher than pre-9/11 levels but with decreases in various segments. Some brokers have reported decreases in premiums as high as 25 percent, but those have turned out to be unusual cases. For those bizav operators who have seen decreases, the average reduction has been 5 to 10 percent.
The object of the regulation is to set minimum insurance requirements for air carriers and aircraft operators regarding coverage for passengers, baggage, cargo and third parties. The rule applies to all operators flying into, out of, within or over the territory of a member state. The new insurance levels are tied directly to the mtow of the aircraft and a special drawing right (SDR).
Everywhere we look in aviation today we can see long overdue signs of an economic recovery and return to the good old days. However, if you look beyond the obvious indicators, you will see clues that in the future our industry will not look the same as it did five years ago.