WTO chief calls for mutual insurance in airline sector

WORLD Tourism Organization (WTO) secretary-general, Francesco Frangialli asked governments to fully support the initiative of a global mutual insurance solution in the airline sector. In a letter to the Ministers of tourism, Frangialli suggested that governments respond positively to this proposal created by the world aviation community through the International Civil Aviation Organization (ICAO). "Following the attacks on September 11, 2001, insurance companies threatened to cancel war risk and anti-terrorism insurance worldwide and whilst that situation was resolved, the insurance market is unwilling to reinstate it in a way which gives stability for airline operations for the future," said Frangialli. His letter noted the following: "This affects all companies and markets but is of particular importance to smaller developing markets whose tourism is entirely dependent on air transport links. The airline sector, which is fundamental to the long term development of tourism, was one of the hardest hit in the recent tourism crisis. WTO believes the initiative of ICAO, with the full support of the private sector through International Air Transport Association (IATA), would have a broader strategic scope in demonstrating the importance of the tourism sector and hence its need for adequate reasonably priced air service." (Miguel de Sousa)