Crash unlikely to thwart US Airways' economic recovery

[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

 



Crash unlikely to thwart US Airways' economic recovery

CHARLOTTE, N.C. (AP) =97 The crash of a US Airways commuter flight will cost=
=20
the insurance industry tens of millions of dollars, but is unlikely to=20
derail the airline's efforts to emerge from bankruptcy protection, experts=
=20
said. Nor is the crash likely to threaten the viability of Wichita,=20
Kan.-based Air Midwest, the regional carrier that operated Flight 5481=20
under a code-sharing agreement with US Airways. "It's not one of these=20
things (that could) shut an airline down," Mike Boyd, president of aviation=
=20
consultant the Boyd Group of Evergreen, Colo., told The Charlotte Observer.=
=20
Air Midwest is insured by AIG for such disasters, said Brian Gillman, vice=
=20
president and general counsel for Mesa Air Group Inc., the Phoenix company=
=20
that owns Air Midwest.
The insurance industry could pay up to $85 million in damages, the=20
Insurance Information Institute of New York estimated Wednesday. How much=20
it pays to crash victims' estates will depend on the victims' ages,=20
earnings capacity, number of dependents and whether a jury decides they=20
experienced pain and suffering, said Paul Finizio, an aviation attorney in=
=20
Fort Lauderdale, Fla., where two of the victims lived. For instance, the=20
estate of a 40-year-old who earned $1 million a year might be entitled to=20
$25 million in lost wages.

Who pays will depend on the accident's cause and perhaps whether victims=20
knew US Airways was not operating the flight, lawyers said, adding that it=
=20
likely may take five years or more to settle claims. Mesa operated the=20
aircraft under one of seven code-sharing agreements US Airways has with=20
regional airlines. US Airways sells tickets for Air Midwest, which=20
schedules, prices and operates the flights for a share of the ticket price.=
=20
Attorneys have called such arrangements misleading because passengers often=
=20
are unaware that another airline is operating the flight. But US Airways=20
spokesman David Castelveter said federal law now requires airlines to tell=
=20
passengers who's flying the plane. "It's not in small print," he said. Such=
=20
distinctions are unlikely to deflect victims' families from naming US=20
Airways in their claims, said aviation attorneys. "I can guarantee you that=
=20
on the first pleadings filed, that US Airways will be named as a=20
defendant," said Robert Mineo, an aviation attorney and aeronautical=20
engineer in Raleigh. Wednesday's crash is the first fatality in Mesa's=20
history and came as the airline industry is losing millions of dollars=20
after the Sept. 11 terrorist attacks. Mesa posted a $9.3 million loss in=20
2002, but its passenger traffic jumped 46 percent last month compared with=
=20
the previous year. The company has had more than 470 service-difficulty=20
reports filed with the Federal Aviation Administration since 1990 =97 not=20
unusual, given the size of the company's operations, aviation safety=20
consultant Eric Doten said. Most involved minor concerns, he said.


***************************************************
The owner of Roger's Trinbago Site/TnTisland.com
Roj (Roger James)

escape email mailto:ejames@escape.ca
Trinbago site: www.tntisland.com
Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/
Steel Expressions www.mts.net/~ejames/se/
Site of the Week: http://www.hilofoodstores.com
TnT Webdirectory: http://search.co.tt
*********************************************************

[Index of Archives]         [NTSB]     [NASA KSC]     [Yosemite]     [Steve's Art]     [Deep Creek Hot Springs]     [NTSB]     [STB]     [Share Photos]     [Yosemite Campsites]