SPACE WIRE
Lufthansa Cargo to limit Iraq war risk surcharge to Asia and Middle East
FRANKFURT (AFP) Apr 09, 2003
Lufthansa Cargo, the freight division of German flag carrier Lufthansa, said Wednesday its planned "war risk surcharge" would be limited to freight destined for Asia and the Middle East.

Last month, Lufthansa had announced it would impose a surcharge of 0.10 euros (dollars) for every kilogramme (2.2 pounds) of freight transported to cover the additional costs arising from the war in Iraq.

The amount of the levy would remain unchanged, but instead of being imposed worldwide as originally planned, it would be restricted to packages headed to Asia and the Middle East, Lufthansa said in a statement.

The surcharge would come into effect on April 14 and would remain in effect until the military conflict in Iraq was over and Lufthansa Cargo could resume normal operations.

Lufthansa Cargo said the measure was necessary because it had been forced to introduce a number of cost-intensive measures in order to maintain its operations, including the alteration of flight schedules and complex re-routing of flights.

Such measures not only increased fuel consumption, but also the costs for additional staff, essential aircraft maintenance, extra handling services at airports and substitute charter aircraft, the carrier argued.

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