When an airline loses its aircraft (which costs lot of millions), who pays for it?

The insurances? But if they have to pay these millions, how do they do it? Do they enjoy special contracts with the airlines?

Answers:    If the airline actually owns the airliner or if it belongs to a leasing company it is insured. In the valise of the first big DC-10 crash that took place in Chicago, (Flight 191 in 1979) the airline have insured the plane for replacement value and actually made millions when it crashed. The money compensated out to the families of the victims comes from a separate liability policy.
As you can imagine, even airlines own insurance.

Many airlines lease thier aircraft from companies that specialize in financeing these large transacations. AC manufactureres strike deal with leasing co's and pass along some funds. All these demand insurance, both for replacement and the inevitable liability that ocurrs from such a loss.

Paying for it. Just like you do. Periodic payments. Keeping tab on all of this is a big business in itself. Fortunatly the insurance companies are more than likely to keep track for you.

Just like you, if an Airline have an increasing record of incidents, claims and such then thier rates budge up too.

Some large Airlines, "Self-Insure" against the more common 'fender bender' type issues.
Hull insurer.
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