Ash cloud costs the airlines over a billion!
Posted by Jacqui | Posted in Airport Car HIre | Posted on 21-04-2010-05-2008
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After 6 days of airport closures the airlines are losing money hand over fist! True they are saving money on fuel costs but those savings don’t balance their losses. It also seems that the biggere carriers such as BA are losing more than the budget airlines like Ryan Air and easyJet.
This is not just because of the difference in ticket costs but also because unlike the larger airlines, the smaller ones are less generous to their passengers! They give less help in the way of hotel and food costs, so passengers stranded away from home are incurring more costs if they flew with a budget airline. Will it have any effect on passenger numbers for those budget airlines when travel is normal again? Who knows but I suspect many will think twice before booking in the immediate future.
The ash cloud has not been all bad news though, coach and rail passengers have increased with Eurostar passengers up by some 40%, it’s going to be up to them to provide such a great service that they’ll keep some of those numbers when the airlines are flying normally again.
Of course it’s not just the airlines that are suffering, experts estimate that European businesses are losing 400 million a day in lost productivity due to stranded employees. Will governments step in and help the airlines and other companies in this fragile economic climate? It could be disastrous if they don’t and equally bad if they do because they can’t help everyone and those smaller companies will probably be the ones who suffer!
They are also the ones who will probably need help the most but what is government to do? Larger companies have more employees and those are the ones they’ll probably feel must be saved.
