Economic impact of ash cloud bigger than 9 / 11 ?

The economic damage that the volcanic eruption in Iceland brought is according to the international trade association for air IATA higher than the estimated impact of the terrorist attacks on September 11, 2001 in New York.
According to IATA airlines run every day at least 200 million U.S. dollars in lost revenues. Giovanni Bisignani (IATA chairman) thinks that even this estimate is on the conservative side.

In total, this amount could increase to 250 or even 300 million U.S. dollars per day. The fees that airlines must pay passengers and the fuel for the movement of aircrafts is still disregarded.

EU assistance
The European Commission want to help airlines that are in distress, caused by the ash cloud.

The EU will probably start drafting rules which allows Member States to provide emergency financial assistance to airlines. This should allow EU countries to quickly get approval for giving financial assistance.

The damage and resulting from Schiphol airport to fly by the volcanic eruption in Iceland is 2 to 3 million per day, according to operations manager Ad Rutten of Schiphol Airport. He said this in the Dutch news program “Goedemorgen Nederland”.

KLM airline estimates that the company suffers a loss of 5 to 10 million per day caused by the ash cloud.

TUI Travel, the largest tour operator in Europe has so far a cost of 20 million pounds (22.6 million).

The disruption of the airline Air France daily cost 35 million euros. British Airways calculates the damage 15 to 20 million pounds sterling (17 to 23 million) per day.


4 thoughts on “Economic impact of ash cloud bigger than 9 / 11 ?

  1. EU (no)assistance
    The IATA has criticised Europe’s governments for the way they closed airspace because of volcanic ash. It is neccessary to think about passengers’ safety, but not make a chaos!
    Also according to IATA chief G.Bisignani: “This is a European embarrasment and a European mess.”
    The scale of this crisis facing the industry is greater than at the time of the 9/11 attacks, which is in my opinion ridiculous because if EU Commision had risk management team to discuss this natural (not terrorist) disaster, it would not have these consequences and loses, but the EU transport ministers were holding only talks by video conference…
    “The decision that Europe has made is with no risk assessment, no consultation, no co-ordination, no leadership,” Bisignani said.

  2. It is incredible that the economic damage because of the eruption of the vulcan is worse than of the terrorist attack on September 11. This is a very good example to see how expensive flying is and what can happen when such an event occurs. For example, of the cost perspective: many millions of dollars are lost and from the human perspective: many people were stuck in places and could not fly back to their families and jobs. In these days when everything was closed, the airlines were nearly driven into bankruptcy. If I were a boss of a big airline company I would be very thankful to the EU Commission for the bailout plan.

  3. I´m not surprised that economic damage was bigger than September 11. Consequences of this Iceland vulcan eruption was economically huge for airlines, tour operators and transport companies. Especially situation is hard to small companies and tour operators. Because of this incident we can really see how dependent people are of flying nowadays.

  4. It really is a very bad situation. Especially when they said that the damage, which is made by the vulcan, is much bigger than September 11.
    I really feel very sorry for the poeple who had to spend their time on the airport, not after the customs but before it.
    The airport personell took care and provided food and sleepingplaces for those after the costums, but the other had to takecare for them selves.
    But now we know that people are only small little things on this huge earth. We are very dependent of the nature. We can benefit of the nature, but we’ll also have to face some consequences,the so called drawbacks.


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