Some Asian Airlines Still Seeking Help for War

October 8, 2001

While most Asian National Flag carriers have been able to obtain government assistance to meet new insurance demands for war and terrorist risk cover, smaller airlines are still seeking solutions, heightened by increased fears as a result of the opening of hostilities in Afghanistan.

The Japanese government has now extended its guarantees of third party war and terrorist insurance of up to $2 billion to all Japanese airlines, while China has made similar guarantees up to $50 million.

The Hong Kong government indicated that it was prepared to help the former colony’s two largest carriers, Cathay pacific and Dragonair, but they have since been able to secure private coverage. The authorities have also authorized all airlines that operate Hong Kong routes to levy specific surcharges on their flights to cover the increased premium costs for the next three months.

In India and Thailand smaller airlines are still seeking government assistance, which has already been given to the national companies, Air India, Indian Air and Thai International.

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