Air-India and Indian Airlines are negotiating with international insurance companies, which have asked all airlines flying from and to Kuwait to pay heavy war-risk insurance premia, aviation sources said on Monday.

While Air-India would have to pay over Rs 40 lakh (Rs 4 million) per flight as insurance premia for Boeing 747-200s and A-310s it operates, Indian Airlines which flies A-320s would have to pay a little less, the sources said, adding this cost would include a premium of about $60 per passenger.

The sources said the two Indian carriers were negotiating with the insurance firms at the moment. Neither has any decision being taken on the matter, nor the exact amount they would have to pay worked out, they said. The insurance premia includes third-party and hull insurance cover.

While Air-India flies six times a week to Kuwait, Indian Airlines operates 16 flights a week.

Due to the heightened burden and risk in operating on the dangerous skies of the region, large number of foreign carriers have already suspended operations from Kuwait or have decided to make long detours instead.

War-risk insurance was imposed after the LTTE attack on the Colombo airport in 2001 and the September 11 terrorist strikes in New York and Washington in the same year.    

Meanwhile, Civil Aviation Secretary K Roy Paul held a series of meetings with Kuwaiti and Indian aviation authorities to review the flight arrangements to meet the heightened demand of Indians wanting to return to the country following the ongoing US-led war in Iraq.

Kuwait Airways has itself decided to operate out of Sharjah and Dubai in case Kuwait City Airport is closed down.

Large number of international airlines have decided to either close down operations from Kuwait and neighbouring areas or re-route their flights.