SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

QF Gets OZ Insurance Lifeline. Hold On... Govt.?!

Sat Sep 22, 2001 6:07 pm

I remember old dear old Geoff Dixon saying that it was unfair that Singapore Airlines was "controlled" by the Singapore Government as the SG Govt. could give it money anytime during times of crisis.

Dr Cheong Choong Kong has come out openly that this is a time of crisis for the aviation and airline industry.

Geoff said that SIA has unfair advantage over QF because of it's state-controlled status. But now the hypocrisy comes in. QF is getting state aid of itself, when SIA is left to sweat it out by the SG Govt. (and rightly so may I add). Hmmmm. I think he thought that some of us have short-term memory loss.

----
Australian govt helps fund airline war insurance
Saturday September 22, 2:59 AM EDT

CANBERRA, Sept 22 (Reuters) - Australian Prime Minister John Howard announced a $US5 billion insurance lifeline for Australian airlines on Saturday to protect them from rising premiums in the wake of the aircraft attacks in the United States.

Howard said the government would provide third-party war indemnity cover for the country's main carrier, Qantas Airways Ltd (QAN), and any other carriers with aircraft with 15 or more seats.

He said Qantas could have been forced to close down or at least scale back international flights from next Tuesday without government support.

"In the wake of the terrorist atrocities in the United States of America, global aviation insurers have moved to raise premiums and reduce war risk cover to unacceptable levels for third party damages to people and property on the ground," Howard told reporters.

Howard said current aviation insurance arrangements of $US50 million cover for war, terrorism and hijacking were clearly inadequate.

He said the government would provide the cover over the next month and the scheme reviewed on a monthly basis while Australia worked with other countries on a longterm approach.

He said carriers with aircraft smaller than 15 seats could also approach the government with a request for indemnity.
Anyone can fly, only the best Soar.
 
PerthGloryFan
Posts: 725
Joined: Fri Oct 27, 2000 9:48 pm

RE: QF Gets OZ Insurance Lifeline. Hold On... Govt.?!

Sat Sep 22, 2001 7:38 pm

Hey SingAir old chap, did you actually read that report? The OZ govt is not giving anybody anything directly unless there is a claim against QF due to a war action - look up "indemnity" in the dictionary.
Of course this will save QF in premiums - if any cover of this type is in fact available.
Cheers  Smile

PGF
 
SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

RE: QF Gets OZ Insurance Lifeline. Hold On... Govt.?!

Sat Sep 22, 2001 10:08 pm

PGF: OK, granted. Thanks  Smile/happy/getting dizzy Appreciate it. I withdraw my comments made above the article (if that makes any difference to anyone), until I need to use it in the future. Suggest deletion of thread, reason: Factually incorrect
Anyone can fly, only the best Soar.

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