Cost of Plane Insurance Jumps
LONDON (AP) _ Airlines are being hit with huge increases to insure their planes after the terrorist attacks in the United States, a major aviation insurance company said Friday.
Goshawk Insurance Holdings, which insures aircraft around the world, said rates had soared as much as 10-fold since the Sept. 11 terror attacks when four airliners were destroyed in the United States.
Goshawk finance director Chris Fagan said the cost of insuring planes against war, terrorism and political risks was increasing before the American attacks. Insurance companies have begun reviewing aviation insurance policies to reduce their risk after the American incidents, Fagan said.
The company denied the insurance industry was trying to profit from the recent attacks.
``Rates had started to go up anyway. We are reacting to the market,″ Fagan said.
Airlines around the world have cut services and dismissed staff as their business has plunged in the wake of the crisis. They are also struggling with increased security costs.