Ash crisis “embarrassing wake-up call†for European governments
Tuesday, 27 May, 2010
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European airlines suffered an almost 12% dip in passenger carryings last month due to disruption caused by the Icelandic ash cloud.
IATA figures for April showed an overall 2.4% slump in scheduled passenger demand as a result of massive flight cancellations in Europe over six days.
The fall in traffic – amounting to 11.7% by European carriers – interrupted the industry’s recovery from the global financial crisis, the organisation said.
IATA director general and CEO Giovanni Bisignani said: “The ash crisis knocked back the global recovery – impacting carriers in all regions.
“Last month, we were within 1% of pre-crisis traffic levels in 2008. In April, that was pushed back to 7%.
“European carriers bore the worst of the volcano’s impact. Their 11.7% drop in passenger traffic could not have come at a worse time. Europe’s slow recovery from the global financial crisis and its currency crisis are already a huge burden on the profitability of its airlines.
“The unco-ordinated and excessive cancellations and unfairly onerous passenger care requirements rubbed salt into the European industry’s wounds.”
The April drop in demand in Europe was attributed to both the flight cancellations (two-thirds of the total decline) and follow-on cancellations due to uncertainty of the availability of air travel (one-third).
Early indications for May show a rebound in travel from the disrupted levels in April, IATA said.
Bisignani challenged Europe to reform its air traffic management.
“The ash crisis was an embarrassing wake-up call for European governments. We need leadership to deliver the Single European Sky, fair passenger rights legislation and continent-wide coordination,” he said.
The scale of the ash crisis saw global load factors drop to 76.9% from the 78.0% recorded in March.
While March traffic was within 1% of pre-crisis levels for both passenger and cargo, this slipped to 7% for passenger and 3% for cargo in April.
“The ash crisis was a shock. While there is always a danger of the consequences of renewed volcanic eruptions, the impact on passenger confidence should be limited. Unfortunately, we are trading ash for two additional uncertainties – strikes and a growing currency crisis – both of which are also focused on Europe,” added Bisignani.
“The labour unrest plaguing Europe this year is unbelievable.
“It’s a tough competitive world. Airlines need to reduce costs to be competitive. Labour must realise that their pay cheques are supported by the performance of the company.
“The middle of a very fragile recovery is not the time for striking. This mentality is divorced from reality,” said Bisignani.
by Phil Davies
Phil Davies
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