The heart-rending September 11 events in New York dealt a heavy blow to air carriers worldwide, Aerosvit Director General Hryhory HURTOVY said on October 23. As he put it, “a downward tendency is apparent,” and, although it is getting weaker as the distance from the US grows, Ukraine is sensing the reverberations. In the case of Aerosvit, which carried 244,000 passengers in the first nine months of 2001, the estimated market volume plunge is 10% “of the forecast growth rates.” Mr. Hurtovy opined that military operations in Afghanistan will also impact the air carrier market, as fewer vacationers will opt for traditional winter resorts, meaning travel routes will have to be modified. According to Mr. Hurtovy, the terrorist attacks on the US have in fact precipitated a collapse of the aviation insurance market. As a result, all air carriers are facing a dilemma: either to put flights on hold or accept conditions set by insurance companies, which have hiked the cost of insurance against hijackings or military action. Mr. Hurtovy has estimated that his company will incur at least $700,000 in additional expenses linked with such risks. As of October 8, Aerosvit has introduced a $4 insurance fee that is supposed to partially offset the expenses for increased security measures on aviation transport and insurance.
