The airline pays $100,000 a week to cover its fleet amid escalating risks

(Emirates Airline) 

 Financial Times.. Emirates Pays Lower War Insurance Premiums Than Rivals

The Financial Times reported that Emirates pays lower premiums than some of its competitors for war risk coverage, according to insurance industry sources, as airlines continue to assess the risks associated with the region's security developments.

According to the sources, the carrier agreed to an additional premium of approximately $100,000 per week to cover its entire fleet operating to and from Dubai. Industry sources indicated that some airlines outside the Gulf region are receiving offers ranging from $70,000 to $150,000 per flight to the region.

The newspaper reported that private jet operators are facing individual premiums of up to $50,000 for a single flight to the region, given the escalating risks, particularly following the war that erupted after the US and Israeli military operations against Iran, which resulted in the cancellation of thousands of flights over four weeks.

Sources indicated that Emirates' lower premium is due to several factors, including the company's large size, its operational experience in the region, and the large number of aircraft it insures, which gives it greater negotiating power to secure lower rates.

They also noted that the insurance policy, negotiated through the insurance broker WTW, covers the first $2 billion of the company's fleet losses, a level close to the maximum coverage available in specialized global insurance markets.

In the same context, industry sources explained that Gulf airlines typically obtain more favorable insurance rates compared to their international counterparts, given their experience operating hundreds of flights daily through regional airspace, in addition to close coordination with airports and relevant authorities.

The newspaper noted that the UAE Air Force is continuously monitoring the airspace, and aircraft are not permitted to take off or land until conditions are deemed safe. Meanwhile, several Gulf airlines are resuming operations, including Etihad Airways from Abu Dhabi, Air Arabia from Sharjah, and Qatar Airways from Doha, with Emirates remaining the largest in terms of the number of flights compared to its competitors.