Session: State Capitol, Room 414 Juneau, AK 99801-1182 Phone: (907) 465-4939 Fax: (907) 465-2418 Interim 716 W 4th Avenue, Suite 620 Anchorage, AK 99501 Phone: (907) 269-0244 Fax: (907) 269-0248 APOC Contribution Reports Bill Action & Status Inquiry System

Airline Insurance to Get Closer Look
Subcommittee Seeks Options to Lower Costs and Preserve Air Service

(JUNEAU) -- With soaring insurance costs threatening to choke off in-state passenger air service, Rep. Andrew Halcro (R-Anchorage) will lead a House Labor and Commerce subcommittee to study ways to resolve the issue and maintain passenger service throughout Alaska.

"A multitude of factors, including some tragic accidents, have forced the companies insuring Alaska's smaller air carriers to raise their rates substantially in the last few years," said Halcro. "We need to see if there's some way we can relieve this burden on airlines, while making sure the flying public is properly protected."

As the insurance industry demands more liability coverage for airlines offering passenger service and the cost for that coverage soars, some carriers are abandoning passengers to focus on less lucrative but more affordable freight service, Halcro said. That means higher prices and fewer flights for rural Alaskans, who depend on smaller carriers for access to jobs, friends, families and emergency services.

"It's been clear for some time that there is a lack of affordable insurance for Alaska's smaller flying operations," said Halcro. "Air service is a lifeline for many residents, and if we don't address this insurance problem it could mean significant hardships for a lot of people -- not only airline customers, but their employees, as well."

Halcro's district includes the state's largest commercial airfield, Ted Stevens Anchorage International Airport, and he has been working on the issue for some time. Labor and Commerce Committee Chair Rep. Lisa Murkowski (R-Anchorage) created the subcommittee last week, and named Reps. Pete Kott (R-Eagle River), Joe Hayes (D-Fairbanks) and Halcro as members.

"We'll sit down with the Division of Insurance to see what role, if any, the state can play in resolving this situation," said Halcro. "We'll also talk to those in the private sector who are writing or have written insurance coverage for air carriers in Alaska, to identify the exact problems." Following its initial investigation, the subcommittee is due to issue a preliminary report to the full committee Feb. 7.

"Do we need tort reform for aircraft liability?" he asked. "Should the state work to facilitate insurance pooling? We're not sure, but we'll turn over every stone to find solutions."

# # #

Broadcasters Note: Audio comments are available on the Majority Actuality line:
1-800-478-6540 or below

| Rep. Halcro's Page |

| Top | Home | Site Search | Breaking News | Legislators | Bills |
| Committees | E-Newsletter | Surveys | Research | Help |

The Official Web Site of the House and Senate Legislative Majorities
for the 22nd Alaska State Legislature
To Report Technical Problems or Contact Webmasters