PPRuNe Forums - View Single Post - Airlines to be Grounded Over Changes in Insurance Rules?
Old 21st Sep 2001, 01:15
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Intruder
 
Join Date: May 2000
Location: Seattle
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The limitations on 3rd-party liability coverage may be a real concern, but the rest seems way overblown.

The $1.25 per passenger surcharge is a no-brainer -- the airline simply increases ticket prices by $2.00 each! Anyone who thinks the public will refuse to fly solely because of a $10 ticket price increase to cover the increased security costs is, IMO, unable to see the forest for the trees.

War-risk insurance is also simply a matter of passing along the increases to the customers. We have had airport tax surcharges and fuel surcharges and electricity surcharges ad nauseum in the past (and currently), and the public still continues to fly and ship their goods. Since the seagoing shippers also appear to be subject to an insurance cost increase, the probability of a customer choosing to change the mode of shipping solely because of an insurance surcharge is relatively low.
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