Dubai Airport $8 billion aircraft exposure risk

Dubai Airport

Our analysis shows that $8 billion of aircraft was on the ground at Dubai airport during last week's rainstorm.

Last week’s reports on the Dubai airport deluge focused on flight delays and cancellations, but it almost went unnoticed that $8 billion of aircraft on the ground was at risk of being damaged by the intense rainstorm according to our analysis. 

Exposure Management Solutions 

Analysis from our ALPS Aviation exposure management solution found that there were 190 aircraft on the ground at the time when the storm struck. These aircraft had a combined total valuation of $8 billion. 

Emirates had the most aircraft on the ground at Dubai airport with 131 aircraft, with Dubai airport being a hub for Emirates. FlyDubai, had the second most aircraft on the ground at Dubai airport at the time of the storm. 

World’s Second Largest Airport 

Dubai along with the rest of United Arab Emirates and neighbouring countries was pounded by a severe storm. The storm hit sections of Dubai Airport, which is the world’s second-largest airport.  

Transport and power in UAE have been hit by the storm, with news outlets reporting that many people have resorted to alternative transport means such as canoes and boats to get around Dubai. 

Despite re-opening following the storm, Dubai Airport has struggled to function, with many news outlets reporting chaos at the airport. 

Need for Robust Data and Analytics 

When the airport has re-opened, there will need to be an assessment of the extent of the damage to all aircraft on the ground. 

For aviation (re)insurers looking to manage the exposures of their corporate insured clients, an event like this is a clear example of the potential impact of severe weather events on grounded aircraft. This event highlights the need for robust data and analytics that shine a light on potential ground accumulation exposures across all airports. 





Post Date: 24/04/2024

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