News / Europe

Recent Flight European Cancellations Creating Significant Economic Implications

Multimedia

Audio
Jennifer Glasse

The closure of airspace over Britain, Northern Europe and Scandinavia is having economic repercussions around the world.  It has halted the transport of goods, stranded hundreds of thousands of passengers and dealt a severe economic blow to the airline industry.

Nearly 100,000 flights were canceled or delayed as volcanic ash forced the closure of European airspace.  The International Air Transport Association says the crisis has cost airlines more than $1.7 billion and is devastating an already beleaguered industry.

British Airways Chief Executive Willie Walsh says his company lost between $20 million and $30 million a day.

"My personal belief is that we could have safely continued operation for a period of time," said Walsh.  "I think there were occasions when the decision to close airspace could have been justified."

Walsh says canceling everything was unnecessary and that after the unprecedented delays and cancelations there will still be complications with air travel.

ADDITIONAL INFORMATION
Volcanic Ash Stops Europe Flights—Why Ash Is Dangerous (National Geographic)
An eruption in South Iceland (Icelandic meteorological institute
Volcanic Gases and Their Effects (U.S. Geological Survey)

"I think to get back to normal levels of operation, from an industry point of view, I think will take weeks," he noted.

About 20 percent of airline revenues comes from air freight.  

Aramex logistics company managing director Jim Armour says the shutdown cost his company about a quarter of its daily revenue.  The real problem is the uncertainty he says.

"If someone said this was going to last for two weeks like a strike, you could make your plans, you could think about what you do with your people.  I think the concern is the unknown really," said Armour.

Armour says the implications are not just economic.

"[There are] terrible impacts.  [For example,] you want to move blood plasma around and you need it badly, you want to move kidneys around… There [are] some disastrous consequences apart from the economic ones," he explained.

Flower growers in Kenya and Israel have had to destroy tons of roses and other flowers that are too wilted to have any economic value. Fruit and vegetable producers have also lost crops that could not travel to Europe. Jo Tanner, with Britain's Freight Transport association says there are lots of untold costs.

"The impact economically is really difficult to judge at this stage, because we do not know how much has been able to be salvaged, how much extra cost there has been in terms of the contingency planning, so moving stuff to particular hubs by air and then picking up the rest of the journey by road, rail or sea," said Tanner.

Airlines are asking European governments for financial and logistical compensation to help alleviate some of their losses.  Many businesses will not have the same option and it may take some time before the full economic impact of the volcanic ash cloud is known.

You May Like

UN: 1 Million Somalis at Risk of Hunger

Group warns region is in dire need of humanitarian aid, with at least 200,000 children under age of five acutely malnourished as drought hits southern, central part of nation More

Human Rights Groups Allege Supression of Freedoms in Thailand

Thailand’s military, police have suppressed release of independent report assessing human rights in kingdom during first 100 days of latest coup More

Jennifer Lawrence Contacts FBI After Nude Photos Hacked

'Silver Linings Playbook' actress' photos were posted on image-sharing forum 4chan; Federal Bureau of Investigations is looking into matter More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Ukraine Schools Resume Classes, Donate to Government Forcesi
X
September 02, 2014 12:58 PM
A new school year has started in Ukraine but thousands of children in the war-torn east are unable to attend because of ongoing clashes with pro-Russia rebels. In Ukraine's capital, patriotic education has become the norm along with donations to support injured security forces fighting to take back rebel-held areas. VOA's Daniel Schearf reports from Kyiv.
Video

Video Ukraine Schools Resume Classes, Donate to Government Forces

A new school year has started in Ukraine but thousands of children in the war-torn east are unable to attend because of ongoing clashes with pro-Russia rebels. In Ukraine's capital, patriotic education has become the norm along with donations to support injured security forces fighting to take back rebel-held areas. VOA's Daniel Schearf reports from Kyiv.
Video

Video US Detainees Want Negotiators for Freedom in North Korea

The three U.S. detainees held in North Korea were permitted to speak with foreign media Monday. The government of Kim Jong Un restricted the topics of the questions, and the interviews in Pyongyang were limited to five minutes. Each of the men asked Washington to send a representative to Pyongyang to secure his release. VOA’s Carolyn Presutti has our story.
Video

Video Internet, Technology Offer New Tools for Journalists

The Internet and rapidly evolving technology is quickly changing how people receive news and how journalists deliver it. There are now more ways to tell a story than ever before. One school in Los Angeles is teaching the next generation of journalists with the help of a state-of-the-art newsroom. Elizabeth Lee has this report.
Video

Video Turkmen From Amerli Describe Survival of IS Siege

Over the past few weeks, hundreds of Shi'ite Turkmen have fled the town of Amerli seeking refuge in the northern city of Kirkuk. Despite recent military gains after U.S. airstrikes that were coordinated with Iraqi and Kurdish forces, the situation remains dire for Amerli’s residents. Sebastian Meyer went to Kirkuk for VOA to speak to those who managed to escape.
Video

Video West Africa Ebola Vaccine Trials Possible by Early 2015

A U.S. health agency is speeding up clinical trials of a possible vaccine against the deadly Ebola virus that so far has killed more than 1,500 people in West Africa. If successful, the next step would be a larger trial in countries where the outbreak is occurring. VOA's Carol Pearson has more.
Video

Video Survivors Commemorate 70th Anniversary of Nazi Liquidation of Jewish Ghetto

When the German Nazi army occupied the Polish city of Lodz in 1939, it marked the beginning of a long nightmare for the Jewish community that once made up one third of the population. Roughly 200,000 people were forced into the Lodz Ghetto. Less than 7,000 survived. As VOA’s Kane Farabaugh reports, some survivors gathered at the Union League Club in Chicago on the 70th anniversary of the liquidation of the Lodz Ghetto to remember those who suffered at the hands of the Nazi regime.
Video

Video Cost to Raise Child in US Continues to Rise

The cost of raising a child in the United States continues to rise. In its latest annual report, the U.S. Department of Agriculture says middle income families with a child born in 2013 can expect to spend more than $240,000 before that child turns 18. And sending that child to college more than doubles that amount. VOA’s Deborah Block visited with a couple with one child in Alexandria, Virginia, to learn if the report reflects their lifestyle.
Video

Video Chaotic Afghan Vote Recount Threatens Nation’s Future

Afghanistan’s troubled presidential election continues to be rocked by turmoil as an audit of the ballots drags on. The U.N. says the recount will not be completed before September 10. Observers say repeated disputes and delays are threatening the orderly transfer of power and could have dangerous consequences. VOA correspondent Meredith Buel reports.

AppleAndroid