The volcanic ash cloud from Iceland’s Eyjafjallajokull glacier has made much of northern Europe a no-fly zone for a fifth straight day. It disrupted business and leisure travel, paralyzed air cargo delivery, and left thousands stranded at Airports waiting for a glimpse of hope. But most importantly, is the cost on the airline industry that has taken a severe double hit, following the ever-enduring recession.
As airports in some part of Europe are expected to reopen routes today morning, the International Air Transport Association (IATA) said the impact on the European airline industry had been more severe than the aftermath of the September 11 terrorist attacks, with losses reaching £165m a day. Some airlines have criticized and challenged European governments for relying too much on scientific theory, and started sending up “test flights” which only carried crew members to test flight conditions and see if routes are safe to fly.
“It’s embarrassing, and a European mess,” IATA CEO Giovanni Bisignani told The Associated Press. “It took five days to organize a conference call with the ministers of transport and we are losing $200 million per day [and] 750,000 passengers are stranded all over. Does it make sense?”
Air France-KLM said on Monday that the disruption to services caused by the volcanic ash was costing it £35 million. British airways said lost revenue and one-off charges were costing the group 15-20 million pounds a day. German tourism giant TUI said in a statement it had already lost £23 million and that each day without flights was costing it between £5-7 million more. Airport association ADV said its members were losing more than £10 million per day in lost revenue. Others refused to comment on the size of costs already incurred as airline and travel company shares are experiencing major sell-offs.
While Airplanes stood idle at airports throughout Europe, it seems rail and shipping is experiencing a short-phased boom. Car hire companies are at a price war, taxis are taking requests for trips throughout the continent, trains operating at full capacity and sold-out, businesses are experiencing a shortage of staff as they’re trying to get their staff back, and the list goes on. The only good thing is that manager meetings are either canceled or short, since you never get to meet the PMs.
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Loading ...Tags: European Airlines, IATA, Iceland, suspended flights, Volcanic ash, Volcano
Good read! I never thought it was THAT big of a deal.
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