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China extends govt insurance guarantee to domestic airlines
Chinese government has extended its guarantee for war liabilities to domestic airlines for one month from on Sunday.
Chinese government has extended its guarantee for war liabilities to domestic airlines for one
month from on Sunday.
The government guarantee will apply only for liabilities exceeding $ US 50 million, Xinhua news agency said. The government first offered its guarantee on September 25, when international aviation insurers lowered the ceiling for third party indemnities arising from war to $ 50 million after the September 11 terrorist attacks in the US.
Since October 15, China allowed its domestic airlines to surcharges of upto $ 2.50 dollars per passenger on international routes to meet part of the hiked insurance premium. However, the surcharge is expected to cover only one-fifth of their increased insurance expenditure as the airlines have to pay $ 1.2 billion dollars annually to insurers.
Bureau Report
The government guarantee will apply only for liabilities exceeding $ US 50 million, Xinhua news agency said. The government first offered its guarantee on September 25, when international aviation insurers lowered the ceiling for third party indemnities arising from war to $ 50 million after the September 11 terrorist attacks in the US.
Since October 15, China allowed its domestic airlines to surcharges of upto $ 2.50 dollars per passenger on international routes to meet part of the hiked insurance premium. However, the surcharge is expected to cover only one-fifth of their increased insurance expenditure as the airlines have to pay $ 1.2 billion dollars annually to insurers.
Bureau Report