Business Daily from THE HINDU group of publications Sunday, Aug 13, 2006 |
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Terrorism Logistics - Airlines Industry & Economy - Security Higher security may drive up air travel costs Ashwini Phadnis
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.
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