A fire on an Ethiopian Airlines cargo plane in Shanghai last week could cost the aviation insurance market up to US$200mn, something which would make it the most expensive hull loss in the market’s history, industry publication Insurance Insider understands.
The Boeing B777-200F caught fire while loading cargo at Pudong Shanghai airport on 22 July. The aircraft was on a scheduled cargo service from Shanghai to Sao Paulo-Santiago via Addis Ababa.
No individuals were injured in the fire.
The sizeable loss to airline insurers comes as the market is grappling with a significant drop in premium income as a result of the COVID-19 pandemic and the subsequent grounding of fleets globally.
For insurers on the Ethiopian Airlines account, the loss this week follows the sizable claims that emanated from the fatal crash of flight ET302 in March 2019.
The crash on 10 March subsequently led to the decision to ground the entire fleet of the Boeing 737 Max 8 aircraft worldwide.
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