European airline group calls for refunds of war costs

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European airline group calls for refunds of war costs

BERLIN (AP) =97 The head of a European airline industry group called for the=
=20
continent's governments to guarantee that airlines will be refunded extra=20
costs caused by the war in Iraq, and said passenger traffic had dipped=20
significantly in the first week of fighting. "We are in the most critical=20
situation that the air transport industry has ever experienced," Ulrich=20
Schulte-Strathaus, secretary general of the Association of European=20
Airlines, was quoted Sunday by the Tagesspiegel daily. In the first week of=
=20
the war, passenger kilometers flown by European companies fell by 12%, with=
=20
the deficit on flights inside Europe reaching 15%, he said. "We need a=20
political commitment that extra costs related to the war will be refunded=20
to us," Schulte-Strathaus said, without elaborating. On Friday, European=20
Union nations agreed to loosen restrictions that require airlines to give=20
up underused routes to rivals. Airlines had appealed for such a move to=20
allow them to cut flights to the Middle East and other sensitive routes=20
during the crisis without having to relinquish those takeoff and landing=20
slots permanently. Still, EU ministers said the situation was not=20
sufficiently grave to warrant the sort of handouts or insurance guarantees=
=20
offered after the Sept. 11 attacks on the United States, as insurance=20
companies sharply hiked premiums. The Association of European Airlines has=
=20
estimated the Iraq war could add $2.5 billion to the losses of its 30=20
members, which include British Airways, Lufthansa and Air France.=20
Worldwide, the International Air Transport Association last week warned=20
that airlines could lose $10 billion because of the war, on top of $30=20
billion in accumulated losses since the Sept. 11 attacks.


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