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KLM Royal Dutch Airlines
is to increase the special insurance and security surcharge on tickets by USD 3 effective February 1, 2003. This brings the total
surcharge per coupon to USD 8 or the equivalent in local currency. The initial
surcharge, implemented in the fall of 2001, did not provide sufficient coverage
for the structural increase in insu-rance and security costs.
In the Dutch market, the initial USD 5 surcharge was incorporated into the
ticket price. The current increase will be separately stipulated on the coupon
as a EUR 3 surcharge.
Insurance premiums have increased substantially since the 9-11 attacks, and
airlines and airports have maintained the tighter security measures that were
subsequently implemented. Over the past year, KLM has also invested extensively in extra security personnel and measures, on board as well as on
the ground. KLM has also started the phased installation of new, high-security
cockpit doors.
Airports around the world have also implemented new security measures,
such as the screening of baggage, which also affects KLM operations and raises costs. KLM expects that that the costs involved in the total security
package will be structural. |
