Insurers accused of unfair treatment by companies peripheral to flying
Insurers are being accused of acting as a cartel to force up rates.
Firms that supply airlines say they are being hit by big rate rises.
Some complain of being unfairly classed as aviation risks, even if their products are quite peripheral to flying.
A company that makes sickbags for British Airways, Virgin, and Air France has run into difficulties because of its involvement in the sector.
Malton Inflight, which also makes refreshing wipes, hot towels and nibbles packs for leading airlines, has found its suppliers being told to cut the credit they offer the company.
Director Gordon Oakley said: "Some of our suppliers' credit insurers are cutting what they can give to customers like us - so we have to pay a lot quicker.
"Any time we want something we have to get a payment off to our supplier."
Tom Gunner of the Society of British Aerospace Companies said another company's credit insurance was withdrawn because of its involvement in the aerospace sector.
Others making aircraft parts faced price hikes of up to 400% for cover, even if their only involvement in aviation was making parts used on the ground.
He said engineering firms suspected insurers of acting together to keep prices high.
Gunner said companies making non-flight critical equipment faced no higher risks than manufacturers in other sectors.
He said: "Insurance costs have increased significantly - up to 150% for general insurance and up to 400% for war risks and terrorism cover when it's available.
"Some aerospace companies are finding the aerospace tag is used as an opportunistic excuse for insurers to increase costs.
