Technical report: Aviation - Double-decker takes to the skies.

(From Reinsurance)

Byline: Eric Alexander.

The aviation market anticipates no major problems in meeting the challenges of the double-deck Airbus A380 when it is introduced into airline service next year. In the meantime, insurers will be watching with interest as the aircraft takes its first proving flight later this month, although that may slip into April depending on how long it takes the manufacturer to deal with the aircraft's current overweight problem.

Promoted by Airbus as the world's only twin-deck, four-aisle airliner, it is claimed to be the airlines' solution to the growing demand for air travel. The main deck of the A380 is said to be the widest in the world.

The aircraft's total floor area has 49% more floor space and 35% more seats than the Boeing 747-400. Using all that space for seating, the A380 could carry up to 850 passengers but Airbus is initially suggesting a typical three-class layout with 555 seats. It says in that layout airlines can use the extra space to provide wider seats and better armrests to improve passenger comfort. Also, the lower deck can be used to accommodate passenger amenities, sleeper cabins, crew rest areas and business centres.

Some of the first airlines to fly the aircraft have some much more fanciful ideas to incorporate casinos, even a gym and beauty parlours.

Considering what this means for insurers, Steve Doyle, executive director in the aviation and aerospace division of Aon Limited, said: "The A380 aircraft will change the potential maximum-loss level for the aviation insurance industry. Exposure levels for the A380 will be in the region of 20%-30% more than current wide-bodied aircraft. However, overall, it is widely recognised that the aircraft is not significantly bigger than current wide-bodied jets and it should not create a huge problem for the insurance industry." While not wishing to predict disaster, Mr Doyle said: "It is interesting to note that, historically, the larger wide-bodied jets, such as the DC10 and 747-400, suffered accidents in their first five years of operation."