Aussies See Through Ruse

Airlines, still on the ropes due to a falloff in traffic, rising fuel costs, and increasing governmental interference and expense, are starting to say, "enough," at least in Australia.

After the government decided to lay more and more of the government-imposed security burden on the airports, the Sydney airport said this last $6 million (AUS) hit for 'war and terrorism insurance' would have to be passed on the the airlines. The airlines, knowing they would have to become tax collectors to the tune of another $4 (for foreign fliers) and $2 (domestic), decided that they had to draw the line somewhere.

The Board of Airline Representatives of Australia (BARA) decided last week to formally lobby the Airport, to delay the transfer of those costs. Reporter Sharon Labi notes that BARA's executive director said, "What we're trying to do is engage Sydney Airport in further discussion about the timing of the introduction of the levy and the length of time over which they'll seek to recover the war and terrorism insurance."

They are trying to delay the pass-through, slated to begin April 1, for three months.

[Until September 11, 2001, coverage for terrorist acts, and 'acts of war' had been specifically excluded from most insurance policies. Who is now demanding it, and why? --ed.]

FMI: www.accc.gov.au