The contaminated jet fuel at Ben Gurion Airport and other Israeli airports could cost airlines, fuel suppliers, and the Israel Airports Authority millions of dollars. The extent of claims on Israel's insurance companies is not yet known.
Insurance industry sources say that no preparations are underway to deal with special large claims, but that there are several possible scenarios. The biggest questions are whether airline passengers affected by delayed or cancelled flights will ask for class-action lawsuits, and what will be their results. Such requests have become commonplace in the Israeli business scene.
Even before a possible class-action lawsuit, passengers can sue the airlines for delayed or cancelled flights. Airlines will probably compensate affected passengers in one way or another. Airlines have insurance covering such scenarios.
The sources said that the airlines will probably sue the Airports Authority for damages. The Airports Authority reportedly has extensive coverage from foreign, not Israeli, insurance companies.
The jet fuel suppliers, which will likely be found to bear some responsibility for the contaminated fuel, also have insurance covering product liability and other damages.
Published by Globes [online], Israel business news - www.globes-online.com - on May 8, 2011
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