Air India pays 11% more insurance premium

New Delhi: Air India will have to pay about $3 million or about 11 per cent more than what it paid last year to insure its aircraft fleet.
Sources told Business Line that the northward revision in premium pay out was due to the increase in the average fleet value and also due to the global hardening of insurance rates because of various air accidents across the globe.
Official sources told Business Line said the airline will pay an insurance premium of around $29.9 million for the current year, as against $27 million in the previous year.
The increase comes in the backdrop of Air India Express plane that crashed in Mangalore killing more than 150 passengers.
Air India has paid an interim compensation of Rs 14.06 crore to the families of the 151 victims.
“The premium pay covers not only the aircraft owned by the airline but also the leased capacity and at least six Boeing 787 aircraft,” sources said.
29/09/10 Ashwini Phadnis/Business Line/iStockAnalyst

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Categories: NACIL Sep 2010