Aviation insurance and the implementation of the small aircraft transportation system

Aviation insurance is a unique field from a business, legal, and regulatory standpoint. Issues such as risk management. contracts. and liability raise particular challenges within this highly specialized market. The implementation of the small aircraft transportation system (SATS), as envisioned by NASA and its industry and academic partners entails a thorough analysis of aviation insurance to determine whether the current market structure could support this major policy initiative. In this paper, we investigate the impact of the current legal, regulatory, and market environments oil the implementation and development of SATS. The primary goal is to determine what obstacles these conditions would raise vis-A-vis SATS' implementation. We also seek to identify strategies. alternatives, and regulatory policies that Would help achieve a successful transition to a modern, efficient, and fully developed market for small aircraft transportation services. (C) 2003 Elsevier Ltd. All rights reserved.