The most expensive ash cloud in history!
The International Air Transport Association has today estimated the loss to the industry at around US$1.7 trillion in relation to the Icelandic ash cloud. This is a massive blow for an industry which was already on its knees due to ever-increasing regulatory costs, low passenger numbers and a spiralling fuel price. It also emerges that British Airways lost around £20 million a day during the six-day airspace lockdown over Europe, more than many other airlines around the world.
It was also revealed yesterday that British Airways sent a fleet of aircraft towards the UK despite the fact that the UK Civil Aviation Authority (CAA) had ruled it was still unsafe to fly. Initially the requested that the feet of aircraft were allowed to fly to UK airports was rejected although this was later amended amid claims that the CAA caved in. Whatever the truth, Willie Walsh, the chief executive of British Airways, has been very vocal in his criticism of the CAA over the last few days.
Once the situation has calmed down and business has returned to normal we should also hear news of the official damage done to balance sheets and businesses around the world. The lockdown not only impacted directly upon airports and airlines but companies dependent upon imports and exports have also been hit very hard.
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