Sept 11 attacks cost China airlines $405 mln -paper

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SHANGHAI, Jan 9 (Reuters) - The September 11 attacks on the United States
will cost China's three biggest airlines 3.35 billion yuan, or $404.8
million, in losses in 2001 and 2002, the Wen Hui Daily said, quoting China
Eastern Airlines'(0670) chairman.

"The September 11 incident has a serious effect on domestic airlines," the
official newspaper on Wednesday quoted China Eastern Chairman and Chief
Executive Ye Yigan as saying.

"Air China, China Eastern (600115) (CEA) and China Southern (1055) (ZNH)
alone suffered 610 million yuan in revenue loss in 2001, and direct losses
for last year and this year will amount to 3.35 billion yuan," Ye was quoted
as saying.

Main reasons for the losses include a drop in international flights, fewer
passengers, lower ticket prices and higher operating costs, he said.

An analyst at China's aviation regulator said late in November that the
three airlines suffered an estimated 1.09 billion yuan in lost revenues and
higher insurance costs since the hijacked aircraft attacks on the United
States. ($1=8.276 Yuan)

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