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Mon, Aug 21, 2006

IATA Chief Says Governments Must Pay For Airline Safety Enhancements

Comments Come As Ryanair, BA Talk Of Suing

Airlines are spending millions trying to deal with the ban on liquids aboard commercial flights here in the US. Baggage handling and screening resources are stretched thin and we're getting an increasing number of reports that bags and passengers aren't getting to the same place at the same time. Who should pay for new security enhancements?

Giovani Bisignani says... that bill should go directly to the world's governments.

The president of the International Air Transport Association (right) says in an interview with the French newspaper, Le Monde that it's too early to gauge the financial costs of restrictions put in place after this month's discovery of a plot to blow up trans-Atlantic flights using liquid explosives.

Already, Bisignani says the world's airlines are paying more than $5.6 billion more for security now than they did before the September 11th attacks in 2001.

"National security is the responsibility of governments," Bisignani said. "Very clearly, governments must bear these additional costs for security."

But should airlines be paid back for losses incurred since the new security alert 10 days ago?

As Aero-News reported, Ryanair is talking about suing the British Airports Authority for the expenses it has incurred in cancelling flights, accomodating stranded passengers and shipping lost luggage to its proper destinations. British Airways has hinted at such a move, as well.

Bisignani says BAA should have been better prepared to deal with the crisis... and should have asked for help from the British military... but didn't.

Although he didn't say outright whether BAA should reimburse airlines for their troubles, he did tell Le Monde... BAA should have done a better job of handling the crisis.

FMI: www.baa.com

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