September 2005, Volume 1, Issue 1

Recent Reports

	Boeing Launches 737-900ER Boeing officially launched the 737-900ER on 7/17 with an order for up to 60 of the airplanes from Indonesian low-cost carrier Lion Air. The airline ordered 30 of the new derivative airplanes, with purchase rights for 30 more. The order is worth $3.9 billion at list prices. The 737-900ER, formerly the 737-900X, becomes the newest member of the Next-Generation 737 Family The airplane can carry up to 215 passengers 2,700 nautical miles in single-class configuration First 737-900ER is scheduled for delivery in the first half of 2007 Cape Town Treaty Ex-Im Bank approved an extension of its one-third guarantee fee reduction for countries that ratify the Cape Town Treaty. The extension is subject to the following conditions: For authorizations made through 9/30/2006 Countries must select Ex-Im Bank-prescribed Treaty declarations If an agreement is reached with the European Export Credit Agencies on a common approach to Cape Town prior to that date, efforts would be made to make an earlier transition to the common approach Will apply to leasing companies if both lessor country and lessee country have ratified the Treaty Large Aircraft Sector Understanding (part of Organization of Economic Cooperation & Development Latest developments for the Large Aircraft Sector Understanding include: Undergoing a renegotiation for large aircraft financing parameters Brazil and Canada have been invited to join in the negotiations Government parties expect the negotiations to take approximately two years to complete an agreement Insurance Coverage Exclusions for Weapons of Mass Destruction The commercial aviation insurance market recently withdrew coverage for weapons of mass destruction (dirty bombs). Specifically: The hull war market has substantially withdrawn coverage through a variety of insurer specific exclusions. It appears possible that the liability war market will also exclude coverage for dirty bombs. The signs are fairly clear that liability insurers are keen to implement the exclusion soon, given the success of hull war insurers. Such coverage exclusions raise numerous implications, some of which will be explored further in future publications.
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