British Airways says it asked the government for financial compensation for airspace closure
April 19th, 2010 - 6:35 pm ICT by BNO News
LONDON (BNO NEWS) — British Airways on Monday said it has asked the government for financial compensation for the closure of European airspace due to volcanic ash from Iceland, saying it is costing them up to 30.5 million U.S. dollars (20 million British pounds) a day.
Virtually all British Airways flights have been grounded since 11 a.m. UK time last Thursday after the Eyjafjallajokull glacier in Iceland erupted, sending volcanic ash towards the European mainland.
“This is an unprecedented situation that is having a huge impact on customers and airlines alike,” said British Airways CEO Willie Walsh. “We continue to offer as much support as we can to our customers, however, these are extraordinary circumstances that are beyond all airlines’ control.”
Walsh said that his and other European airlines have asked the European Union and other 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,” he said.
Walsh welcomed the EU’s initiative to address the economic consequences of the airspace closure on the air travel industry and the wider European economy, which is still recovering from the recession. “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,” Walsh added.
British Airways estimates that the lost passenger and freight revenue together with the costs incurred on supporting passengers is approximately £15($22.8)-£20($30.4) million a day. But, the company said, it has ’significant’ funding available to sustain a considerable period of closure of airspace.
British Airways said that, as of last Thursday, it had more than £1.7 billion ($2.6 billion) of cash and more than £400 million ($609 million dollars) available credit lines which it can draw on if necessary.
The airline said it has cancelled all flights in and out of the UK until at least Tuesday.
- RAW -- British Airways statement on volcanic ash situation - Apr 19, 2010
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- Volcanic Ash: Stranded Passengers Get Good News - Apr 19, 2010
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- India-Europe flights unaffected as of now (Lead) - May 25, 2011
- Ash forces closure of airspace over Scotland, Northern Ireland - May 05, 2010
Tags: bno, british airways, british airways flights, british economy, british pounds, economic consequences, european airlines, european economy, european mainland, extraordinary circumstances, financial compensation, last thursday, national governments, recession, terrorist events, travel industry, uk government, uk time, unprecedented situation, volcanic ash