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Increased Costs for Global Airline Provider

Increased Costs for Global Airline Provider

MDD was instructed to assess the increased costs incurred by one of the largest global airline providers.

A power outage had affected the airline’s tracking software and its ability to fly and land scheduled flights. This caused huge disruption – outgoing flights were delayed and incoming flights were stranded at their departing destinations or other destinations due to being turned away mid-flight on their return.  Other airlines were used to carry passengers that had been affected by the loss and this was at the expense of the Insured.

The category of costs incurred related to additional fuel charges, landing fees, penalties, re-booking fees and reimbursement of expenses for passengers.

The presented claim for increased costs was reviewed. We measured the value of the increased costs incurred to mitigate the loss and we also provided our opinion on the economics of the costs claimed.

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