Governments tell Airlines no cash for ash

The new UK transport minister has ruled out any compensation for airlines following the recent Icelandic volcano disruption. Airline bosses were left “frustrated” at a meeting this week as they were told by transport secretary, Philip Hammond that the UK government would not be supporting them financially.

Airlines including British Airways, Virgin Atlantic, easyJet and Thomson Airways who were at the meeting will now have to wait until a European meeting on June 24th to see whether the European Community will be more sympathetic.

The airlines also raised the issues of airspace closures, the European regulations requiring airlines to pay for all accommodation and Air Passenger Duty. The minister was said to listen but not make any promises.

Commentators believe that it is unlikely that the airlines will get any compensation from governments with so many having to save, and being seeing to save, money in the current Europe wide debt crisis.

A more likely solution may be found in the private sector with a number of airlines talking to leading insurance companies about new “volcano” insurance.

Comments are closed.