Airline companies swindled off $600 mln
A research indicates the annual cost of fraud cases in the company or outside for aviation sector on the global scale has reached 600 million dollars.india Updated: May 29, 2007 01:00 IST
A research of over 180 airline companies around the world indicates that the annual cost of fraud cases in the company or outside for aviation sector on the global scale reached 600 million dollars.
The 2006 Aviation Fraud Research was carried out by Deloitte company with International Airline Internal Inspectors Union.
It says the annual cost of fraud cases within or outside the companies for the sector reached 600 million dollars, increasing by five fold compared to the year 2000 when the last research was carried out.
Indicating that at least one fraud case took place in the last year in 79 per cent of the participating airway companies, the research argued that airway companies lose three million dollars on average annually because of fraud cases.
The study also said the heaviest blow regarding fraud is on economic airway companies. Listing the most common fraud cases as the usage of fake or stolen tickets, cargo theft, fake lost baggage notifications, abuse of flight miles and uncovered check, it said that companies experience the highest loss because of credit card frauds.
The research showed that credit card frauds cause 100 million dollars loss for airway companies annually.
Indicating the most common fraud type as flight mile abuse, the study showed that there is an increase in the number of airway company personnel who transfer flight miles to the accounts of their relatives and friends.
First Published: May 28, 2007 11:47 IST