AIG Woes Spark Concern Among Operators
The economic health of insurance giant AIG has sparked concern among many business aircraft operators who have contacted NBAA with questions about the state of their insurance coverage. Mike Nichols, NBAA vice president for operations, education and economics, is advising operators to “communicate with their aviation insurance broker about plans and contingencies.” An AIG spokesman acknowledged that the company had received “lots of calls.” Even before the company’s government bailout earlier this week, however, jittery policy holders were told, “AIG continues to operate normally. It remains adequately capitalized and fully capable of meeting its obligations to policy holders. From a customer standpoint if [a coverage incident] had occurred, it would have proceeded as though nothing extraordinary was happening.” The National Association of Insurance Commissioners, made up of regulatory authorities from all 50 states, also issued assurances to policy holders: “The federal bailout of the noninsurance portions of AIG does not negatively change the solvency strength of its insurance subsidiaries.” Meanwhile, it was announced today that AIG will be dropped from the Dow Jones Industrial Average starting next week. Sources within the company told AIN that the AIG corporate flight department will be subject to review, like most other elements at AIG, but the mood was “rather optimistic” after a town-hall meeting today with the company’s new government-appointed CEO, Edward Liddy, who outlined plans for a return to normalcy within 24 months.