Business Daily from THE HINDU group of publications
Sunday, Aug 13, 2006


News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Home Page - Terrorism
Logistics - Airlines
Industry & Economy - Security
Higher security may drive up air travel costs

Ashwini Phadnis

But additional surcharges unlikely now

New Delhi , Aug. 12

The heightened state of security at airports around the world following the detection of the plot to blow up aircraft mid-flight between the UK and the US earlier this week is likely to push up travel costs in the coming months.

However, a cross section of international airlines operating from India when contacted by Business Line felt that it was unlikely that the industry would immediately levy any additional surcharge to offset increased operating costs brought about by the security drill that passengers have to go through now or to pay for additional security gadgets that may have to be installed.

Longer check-in time

According to airline officials, the additional security measures mean longer check-in time during which the aircraft would have to wait on the tarmac. "This could lead to an increase in turn-around time for airplanes, thereby pushing up operating costs or reducing revenues as the aircraft would be forced to do fewer sectors," the officials said.

Also, costing could change in the future if the threat perception of the insurance companies about the industry changes. "If the problem persists and the re-insurers insist on a higher premium from airlines, then there could be an increase in surcharges or fares. But, at the moment, it would seem that living with fear has become a part of the global aviation industry and the latest incident would also be forgotten soon," added a spokesperson of a European airline.

Foolproof checks

But some global airlines warn that as more foolproof security checks and measures are put into place, the cost of travel would inevitably go up. "The way things are shaping, secondary security checks just prior to boarding an aircraft may soon become the order of the day. Besides, biometric identification of the passengers is becoming the norm. Implementing these measures are expensive, which would have to be borne by the airlines. With the cost of operations rising, yields falling it would not be unreasonable for airlines to ask a passenger to pay a bit extra for flying them safely," argued a senior airline official.

Related Stories:
Air travel rules made stricter
Travel trade largely unaffected by Heathrow scare
Hand luggage banned on flights from UK

More Stories on : Terrorism | Airlines | Security

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



PNB Readership Survey

Stories in this Section
India is now bird flu-free


Gas price formula: Govt looking at alternatives
Higher security may drive up air travel costs
AIPPEA welcomes India's `avian flu-free' status
PNB board ratifies PLR hike
SBI goes to China; `looking at it as a long-term prospect'
Coca-Cola test results show `lower pesticide residue levels'


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright © 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line