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Air passenger services rerouted
20/03/2003 15:28 - (SA)
Singapore - International airlines on Thursday announced the re-routing or suspension of flights amid security concerns and slackening demand after the United States launched an attack on Iraq.
Among the most affected, Singapore Airlines (SIA) said a total of 65 outgoing flights a week would be suspended from late March, including services to Europe, Asia and Africa, due to softening demand "attributed to concern about the situation in the Middle East".
John Casey, a regional transport analyst with DBS Vickers Securities, said the re-routing would mean extra fuel costs for the carriers and some might have to make extra stopovers, resulting in extra landing and parking fees.
"At this stage, it's hard to predict what long-term impact the war will have on revenues, but you would expect that fewer passengers will be flying these routes in the next few days and we have already seen a decline in bookings to confirm that," Casey said.
Some airlines waived charges for cancelled or deferred flights.
The International Air Transport Association (IATA) said in a statement that the war will only worsen the global aviation industry's losses, which have totalled $30bn since the September 11, 2001 terrorist attacks in the US.
War surcharge on cargo
IATA said the re-routings were in accordance with contingency plans developed and agreed by IATA, the International Civil Aviation Organisation and national governments ahead of the war.
"In these difficult circumstances, we call on governments and industry partners... to share with the airlines the burden of this new crisis and to endeavour to reduce their charges," said IATA director general Giovanni Bisignani.
As well as suspending flights, SIA, one of the region's most profitable carriers, said it was re-routing services to the Middle East and Europe, and had imposed a war surcharge on cargo.
"Several alternative flight paths that avoid the areas of conflict are available, some of which are only marginally longer than the normal flight paths," it said.
Its subsidiary SIA Cargo said it will levy a war surcharge of 25 US cents a kilogram for shipments to affected areas and is also implementing "a range of heightened security procedures."
"Most carriers will probably impose that. It is more common to impose surcharges on cargo than on passengers," said Casey.
Germany's Lufthansa cancelled flights to Tel Aviv and several other Middle East destinations after the start of US-led strikes against Iraq.
Hong Kong flag carrier Cathay Pacific Airways, citing safety reasons, said all of its flights between Hong Kong and Europe were now flying routes over China and Russia.
Cathay has also recently temporarily changed its twice-weekly Riyadh flight to stop over in Dubai instead of Bahrain due to the expected downturn in business and will adjust its schedules according to new developments.
Changed routes
Garuda Indonesia said it has changed the route of its flights between Jakarta and Amsterdam for security reasons.
Spokesman Pujobroto said the flight will now go through Singapore, stop in Bangkok and pass over Cairo. The previous route took the service to Singapore and then over Afghanistan to Amsterdam, passing over the Middle East.
Airline companies in Japan said they had not changed flight plans yet but noted the war, coupled with fears of terrorist repisals, could dampen business further.
Philippine Airlines said it only flies regularly to Riyadh three times a week and so far there has been no decision to suspend or limit the frequency.
The Philippine labour department has suspended indefinitely the departure of contract workers to Iraq, Kuwait, Saudi Arabia and Israel, and Australian flag carrier Qantas Airways Ltd said bookings had declined 15 or 20% due to the war.
Singapore's Transport Minister Yeo Cheow Tong said the city-state expects a slight fall in tourist arrivals but was confident the industry would recover quickly after the conflict ends, as it had after the 1991 Gulf War and the 2001 terrorist attacks in the US. - Sapa-AFP
- SAPA
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