PPRuNe Forums - View Single Post - Air Asia Indonesia Lost Contact from Surabaya to Singapore
Old 10th Jan 2015, 16:21
  #1673 (permalink)  
peekay4
 
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But it was not 'the industry' that paid those extended recovery costs. 'The industry' was getting a free ride on the taxpayers of the location of the crash. In the same way that MH370 searches are being largely funded by Australian taxpayers.
And you would be wrong on both counts.

While governments initially fund searches, in many cases (such as MH370) extended operating costs will be charged back to the airlines, which in turn pay the charges from their insurance policy.

In the case of MH370, Malaysia Airlines has a $2.25 billion per crash liability policy with no caps for Search and Rescue. The Australian government has already reached out to Malaysia to seek reimbursement from this insurance fund.

In the case of AF447, Air France and Airbus directly funded the search for the blackboxes.

More relevant to this case (in Indonesia), Adam Air directly paid for the search and recovery the Adam Air 574 black boxes.

No doubt similarly AirAsia (and their insurer) must absorb / reimburse a large portion of the SAR costs.

For more "routine" recovery operations, governments typically do not charge back the airlines, but that's because the airlines and flying public already pay billions in taxes each and every year for routine government services (which include SAR).
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