BELGIUM: Airlines welcome state aid after 900 million euros loss after ash cloud paralysed air traffic

Record ID: 574916

  • Title: BELGIUM: Airlines welcome state aid after 900 million euros loss after ash cloud paralysed air traffic
  • Date: 28th April 2010
  • Summary: BRUSSELS, BELGIUM (APRIL 27, 2010) (REUTERS) ASSOCIATION OF EUROPEAN AIRLINES MANAGER INFORMATION DAVID HENDERSON TALKING WITH JOURNALIST DAVID HENDERSON'S NECK TIE AND HIM TALKING (SOUNDBITE) (English) ASSOCIATION OF EUROPEAN AIRLINES MANAGER INFORMATION, DAVID HENDERSON, SAYING: "I think it shows just how big the problem was that they have allowed themselves such a wide range. They have to get information from various sources it's not just the airlines who have lost money its the airports, tour operators, ground handlers and so on. All of these different stakeholders have to be taken into account. On our side obviously we have been calculating figures since quite early on in the debate and we still believe that the AEA member airlines lost around 850 or 900 million euros during the nine days of closure." AIRPLANE PAINTING WITH DAVID HENDERSON NEXT TO IT (SOUNDBITE) (English) ASSOCIATION OF EUROPEAN AIRLINES MANAGER INFORMATION, DAVID HENDERSON, SAYING: "If you're an airline and you're looking forward ...If you're an airline and you don't have a lot of money and you're looking forward to starting to get back on your feet during the summer season and something like this then happens it really is a massive shock to your system and even the opportunity to delay some of your payments for a couple of months could make the difference. DAVID HENDERSON TALKING TO JOURNALIST
  • Embargoed: 13th May 2010 13:00
  • Keywords:
  • Location: Belgium
  • Country: Belgium
  • Topics: Finance,Transport
  • Reuters ID: LVA7A4FDIQ2XKYIVSGAN42OU9YH7
  • Story Text: The Association of European Airlines (AEA) which represents 36 airlines including British Airways, Lufthansa and Air France, welcomed the European Commission's report on the cost of the ash cloud for airlines.
    The EU said on Tuesday (April 27) that more than seven days of flight interruptions across Europe had cost airlines between 1.5 and 2.5 billion euros.
    Speaking for the AEA, David Henderson said the huge gap between the two figures prove the scale of the impact on airlines.
    "I think it shows just how big the problem was that they have allowed themselves such a wide range. They have to get information from various sources it's not just the airlines who have lost money its the airports, tour operators, ground handlers and so on. All of these different stakeholders have to be taken into account. On our side obviously we have been calculating figures since quite early on in the debate and we still believe that the AEA member airlines lost around 850 or 900 million euros during the nine days of closure," Henderson said.
    The EU said airlines could seek compensation from national governments as long as state aid does not affect fair competition.
    Henderson said low cost airlines in particular would need immediate help such as deferring their payments to air traffic control for example.
    "If you're an airline and you're looking forward if you're an airline and you don't have a lot of money and you're looking forward to starting to get back on your feet during the summer season and something like this then happens it really is a massive shock to your system and even the opportunity to delay some of your payments for a couple of months could make the difference," he said.
    Governments will be able to waive restrictions on night flights and defer charges paid to air traffic controllers to help airlines cope with cash-flow problems.
    The estimate covers all sectors of the aviation industry hit by the cancellation of around 100,000 flights, including airlines, airports, tour operators and ground handlers.
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