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Aviation Insurance
Monday, September 1, 2008
Bump up cost

In a recent statement by Jeff Radebe he said that airlines will have to pay compensation for bumping pax on overbooked flights. The airlines, especially SAA, whinge that they have to do this because of all the ‘no-shows’.

Why on earth don’t they do what any other business does – refuse to refund any fare when the passenger doesn’t pitch? If he or she has a good reason they can consider some part repayment, but for those oafs who just don’t bother to arrive – hit them with the full fare and stop stuffing up the other passengers! Meanwhile sub-stantial compensation should be paid to any passenger whose booking has been accepted and paid for and who gets bumped for any reason. By Henry Tours

Concorde crash – Continental Airlines is blamed

In a recent action in France Continental Airlines have been ordered to stand trial with 5 individuals over the Concorde crash in 2000. 109 on board and 4 people on the ground were killed. Blame is being imputed to a strip of metal that was dropped from a previous Continental flight and which caused the Concorde tyre to burst leading to the subsequent crash.
This could be a very expensive outcome – one that will have a serious effect on insurers’ figures. By Henry Tours

Copyright © Insurance Times and Investments® Vol:21.8 1st September, 2008
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