Russian insurance companies fearful of potential flight disasters hike airline rates : LUSENET : TimeBomb 2000 (Y2000) : One Thread

4-12-99 MOSCOW (Agence France Presse) - Several Russian insurance companies, fearful of potential flight disasters due to the millennium bug, have slapped the nation's airlines with higher rates, Interfax reported. But the country's aviation chief said a complete Y2K crossover program was already in full swing throughout the industry. Federal Aviation Service Deputy Director Victor Gorlov said the airlines' systems were being thoroughly checked in preparation for the electronic transition to the year 2000, when many computer systems are expected to fail due to a programming glitch. Russia has been singled out as particularly vulnerable to the potential for disaster at year's end. Its ailing nuclear industry combined with an acute cash shortage have aroused concern in Washington while garnering relatively little notice at home. The nation's top official in charge of the problem has estimated the transition to Y2K-compatible programming will cost Russia upwards of $3 billion. Gorlov said Sunday that preventative measures for the airline industry alone will run at over $3 million, none of which is expected to come from Russia's painfully undersized budget.

-- a (a@a.a), April 13, 1999

Moderation questions? read the FAQ