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These security demands have brought additional operational cost for international air carriers. Investments in security personnel, video surveillance systems, and screening devices have strained the resources of most carriers. In response, most airlines have introduced a security surcharge to recoup some of their investment and operational costs. For example, in August 2008, SAS Cargo reported on its website that it would impose a security surcharge of $0,15 per kilogram. Such security mandates not only add costs, but also slow down the handling process, which leads to an increase in total transportation times.
7.7.2 Oil Prices and Currency Volatility
The increase in oil prices over the past five years has brought many airlines to the brink of bankruptcy. Oil prices and consequently kerosene prices have increased sevenfold since 2002, as illustrated in Figure 7-7.
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