Major airlines insure the jumbo jets;

              from studies made in 1946 and 1958. The pro­posals
were each turned down for various rea­sons.
But the real reason for the repeated re­jection
of the early plans appears to be timing—
the airlines had not yet felt the need to parti­cipate
in their insurance vehicle. They seemed to
prefer to rely on their safety record and the
established insurance markets.
But now that the $25 million, 400-
passenger jumbo jets are about to roll up to pas­senger
terminals, the airlines are feeling the
need. They do not know who will insure their
larger and more expensive Boeing 747's, the
McDonnell Douglas DC 10's and the Lockheed
LI011 's—and they are uneasy.
Airline officials are disturbed, not because
they lack confidence in the airworthiness of
(continued on page 34)
PART I
Picking up
the Insurance Tab for
the Jumbo Jets
For 25 years the world's airline executives have
been making periodic investigations into the
feasibility of creating an airline-owned insurance
company to provide the two major airline asso­ciations—
the Air Transport Association and the
International Air Transport Association—with
hull and casualty insurance.
A 1943 study known as the Black Book
Proposal was rejected, as were recommendations
32