MONDAY ASH ALERT- Grounded flights costing BA up to £20m a day
Sunday, 19 Apr, 2010
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European carriers have called for financial compensation from the EU and individual governments due to the airspace shutdown.
The cost grounding flights due to the volcanic ash alert is costing British Airways up to £20 million on a daily basis.
The airline estimates that lost passenger and freight revenue together with the costs incurred on supporting travellers is approximately £15-20 million a day.
Virtually all BA flights have been grounded since 11.00 last Thursday and it cancelled all flights in and out of the UK today (Monday).
The flying schedule remains under constant review and BA will give customers as much notice as possible about their flights as it receives updates from NATS, a statement said.
People booked to travel on a cancelled flight can claim a full refund or rebook for a later date.
BA said it had “significant funding” available to sustain a “considerable period” of closure of the UK’s airspace.
At the start of the flying restrictions on April 14, BA had more than £1.7 billion of cash and more than £400 million available credit lines which it can draw on if necessary.
BA chief executive Willie Walsh said: “This is an unprecedented situation that is having a huge impact on customers and airlines alike.
“We continue to offer as much support as we can to our customers, however, these are extraordinary circumstances that are beyond all airlines’ control.
“To assist us with this situation, European airlines have asked the EU and national governments for financial compensation for the closure of airspace.
“There is a precedent for this to happen as compensation was paid after the closure of US airspace following the terrorist events of 9/11 and clearly the impact of the current situation is more considerable.
“We welcome the EU’s initiative to address the economic consequences of the airspace closure on the air travel industry and the wider European economy.
“We are also in touch with the UK government which has set up a group to work on this issue as it recognises the impact on airlines and the contribution that aviation makes to the British economy.”
by Phil Davies
Phil Davies
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