with the Swissair MD-11 aircraft which crashed into the sea off the southern coast of Nova Scotia, killing all 215 passengers and 14 crew on board.

The aircraft, which was en route from New York to Geneva, crashed while attempting to make an emergency landing at Halifax airport about one hour and 40 minutes after taking off.

According to market sources quoted by Insurance Day, the loss will be an expensive one for insurers. The aircraft hull was insured for $126.5 million.

Swissair is part of the KSSAF consortium of airlines and the main programme is jointly placed by J&H Marsh & McLennan and Aon and led at Lloyd's by ACE London Aviation, via its Ariel syndicate 48.

Liability payments are also expected to be substantial as Swissair is a signatory to the IATA Intercarrier Agreement, which effectively lifts the liability limits previously in place under the Warsaw Convention.