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Bangkok Airways Pays for Extra Insurance Without Thai Government Help.
Byline: Boonsong Kositchotethana
Oct. 5--Bangkok Airways, the country's largest privately owned airline, has decided to bear the additional cost of third-party war-risk insurance itself as its request for support from the Thai government was not made in time.
Firms that leased the fleet of ATR72 and Boeing 717-200 aircraft to the company as well as financiers had set a deadline of midnight on Wednesday for the airline to meet increased insurance requirements, or else stop flying.
The insurance surcharge has risen from the US$1.25 per person per sector that took effect on Oct 1 to $2.85, a new rate agreed by international insurers. The maximum third-party war-risk coverage has risen to $750 million from $50 million for planes of the size used by Bangkok Airways.
Prasert Prasarttong-Osoth, president of Bangkok Airways, said in an interview yesterday that the airline had no time to wait for the government support that ...
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