JEDDAH, 30 September — The government has agreed to provide the national air carrier with war-risk insurance to ensure continued operation to destinations around the world, according to Dr. Khaled ibn Bakr, director general of Saudi Arabian Airlines.
“The government of Custodian of the Two Holy Mosques King Fahd has provided the necessary guarantees to ensure the continued operation of Saudi Arabian Airlines between the Kingdom and the rest of the world,” Bakr said.
The guarantees will enable Saudi Arabian Airlines to “weather the difficult conditions currently affecting the air transport industry throughout the world,” Bakr told the Saudi Press Agency.
State-owned Saudi Arabian Airlines, with a fleet of more than 100 planes, is the Middle East’s leading carrier in terms of passenger volume.
“The insurance cover provided by the government will also help the airline continue its various services,” the director general said.
He underscored Saudia’s efforts in transporting millions of Muslim pilgrims every year.
Finance and National Economy Minister Dr. Ibrahim Al-Assaf has signed the guarantee letter, Bakr said.
Three Gulf carriers — Gulf Air, Emirates and Kuwait Airways — have each put up $2 billion in guarantees in the aftermath of the Sept. 11 terror attacks in the United States.
London requested a letter of guarantee for third-party coverage by either the company or the government before accepting flights into Britain.
Meanwhile, more foreign carriers operating to and from the Saudi airports have announced the introduction of an insurance surcharge.
Air-India yesterday joined Royal Jordanian, KLM Royal Dutch Airlines and Gulf Air in announcing the new levy on each travel coupon which is attributed to the sharp increase in insurance premiums and the cost of extra security.
AI Western Province Manager S.M. Mazharullah told Arab News that the airline had advised travel agents to levy SR10 per coupon as insurance surcharge effective from tomorrow. The levy is applicable to all types of fares including adult, child and infant.
Royal Jordanian said it introduced on Wednesday a SR19 ($5) levy per flight coupon for all sectors except Colombo. In the case of the Sri Lankan capital, the surcharge remains SR225 for one way and SR450 for roundtrip.
KLM Royal Dutch Airlines stated it had started charging $5 per coupon from Tuesday for all tickets. This charge is valid for all tickets issued on KLM ticket stock.
“No infant/child discount is applicable on the surcharge. The only exception is for Dammam-Bahrain and Bahrain-Dammam coupons where the surcharge need not be collected,” the announcement said, adding that it had been compelled to apply a surcharge worldwide along with other airlines due to the recent developments.
Gulf Air, whose new insurance surcharge became effective on tickets sold from Tuesday, stated that it was charging $5 per flight sector/coupon applicable on all types and all classes of fares including interline tickets.
“For sectors closed on other carriers, the surcharges of those carriers will apply,” the airline said.
A source close to Saudia said yesterday that the carrier might impose a surcharge of $5 on each passenger traveling abroad to cover part of the increased insurance.
The airline industry is one of the sectors hardest hit by the attacks amid a global economic slowdown.
World airlines have announced that tens of thousands of people will lose their jobs, profits will evaporate, and fleets and routes will be slashed.
But Saudi Arabian Airlines said on Sunday that it will not lay off any of its staff despite the depression. “Saudia has not been hit as hard as some other international airlines have been,” Dr. Ali Al-Khalaf, chief of the Presidency for Civil Aviation, told Okaz newspaper.
Khalaf said his organization had taken several new measures to ensure passenger safety on board Saudia flights.
