WestJet Airlines has begun collecting special insurance surcharge to offset the cost of skyrocketing airline insurance in the wake of last month’s terrorist attacks in the U.S.
The Calgary-based no-frills carrier said last week it would begin charging a $3 fee per one-way flight Oct. 1 “as part of a cost-recovery program for surcharges imposed on the airline industry by its aviation insurers.”
The fee will be in addition to the regular $10 NAV Canada surcharges paid by passengers for airport services such as air traffic control. The fees have been integrated into WestJet’s reservation system and will be added to fares immediately.
The airlines, like most North American carriers, have been hit in the pocketbook by mounting security costs and skyrocketing insurance following the Sept. 11 terrorist attacks in the eastern U.S.
The airline also thanked the federal government for deciding late last month to help the financially pinched airlines cover war and terrorism insurance costs for three months.
“Through their effort and assistance, both the airlines and airports can continue to operate with appropriate insurance coverage,” the company said. WestJet has not followed the lead of several other North American airlines in announcing major layoffs and other cutbacks.
Canada 3000 has also announced it will impose a $3 surcharge in response to additional insurance costs. The surcharge will be added per one-way flight sector, for travel on or after Oct. 1, 2001.
In related news, Air Canada revealed last week it will slash 5,000 workers and ground 84 airplanes, while Air Transat plans to cut 1,300 jobs.
Major U.S. carriers, hit by a massive slump in passenger numbers, have also announced thousands of job cuts.
Air Canada has asked Ottawa to follow the example of the U.S. government in providing cash aid and loan guarantees to the airline industry.
