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SilkAir raises offer to families of crash victims

| Source: REUTERS

SilkAir raises offer to families of crash victims

SINGAPORE (Reuters): Singapore's SilkAir has nearly doubled its compensation offer for relatives of the 104 victims killed in the country's worst-ever air disaster after the original amount was criticized by bereaved family members.

The regional subsidiary of flag carrier Singapore Airlines Ltd is now offering Singapore $232,000 (US$140,000) per victim to families.

In a letter to victims' relatives obtained by Reuters on Saturday, SilkAir said it recognized the frustration families felt over the lack of progress in determining the cause of the crash of a SilkAir jet in Indonesia in 1997.

"We have listened to the concerns raised by families and, as a result, we have made renewed representations to our insurers and lawyers on the issue of compensation," it said.

The letter said the offer was on a "without prejudice" basis, meaning the airline was not admitting fault. The offer also could not be used against the airline in court.

The letter said the offer is above SilkAir's legal liability as a signatory to the International Air Transport Association's InterCarrier Agreement.

The Boeing 737-300 mysteriously crashed at Palembang, in South Sumatra, Indonesia on Dec.19, 1997 on a flight from Jakarta to Singapore, killing 97 passengers and seven crew members.

Agreement

The airline had originally offered US$75,000 per victim, determining that amount to be its maximum legal liability under an earlier international agreement on crash compensation.

But it later said it was reviewing the compensation package in the wake of criticism from relatives, few of whom accepted the initial offer.

SilkAir said the increased settlement figure was inclusive of any advance payments relatives had already received and was intended to be a "full and final settlement of claims of those next-of-kin who wish to accept our offer."

Lawyers of one of the crash victims, Suzan Picariello, filed a US$25 million lawsuit in the United States against aircraft maker Boeing last year.

The first anniversary of the SilkAir crash passed last month with accident investigators no closer to any answers as to why the 10-month old jet plunged from a stable cruising altitude of 35,000 feet.

Theories ranging from a terrorist bomb, to structural faults and a pilot suicide had previously been aired in the absence of hard facts.

Oetarjo Diran, chairman of Indonesia's Aircraft Accident Investigation Commission, told Reuters late last year that examinations were focused on aircraft structure, engineering and human performance. He said investigations into possible weather factors and terrorism had been closed off.

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