Airlines and legal holiday firms equate cost of volcanos black clouded cover of ash

David Robertson and Dominic Walsh & ,}

The sweeping of ash lying over majority of the Continent has cost the European economy at slightest 1.3 billion and the aviation industry a serve 650 million.

Economists at the Royal Bank of Scotland guess that the stroke of scarcely seven million people being stuck afar from home would be some-more than 400 million a day in lost productivity.

Airlines and ride companies have been some-more but delay strike given they are losing income whilst additionally profitable to keep thousands of passengers in hotels.

British Airways pronounced that the closure of European airspace had cost it scarcely 80 million given last Thursday and that this was rising at a rate of 15 million to 20 million a day.

The check conduit easyJet pronounced that the intrusion had cost it 40 million so far and would cost a serve 5 million per day. Air France-KLM put the cost at €35 million (31 million) per day.

Estimates of how majority the aviation industry has lost in sum vary, but the International Air Transport Association, that represents 230 carriers, pronounced that the check would be at slightest $200 million (130 million) a day.

John Cridland, emissary directorgeneral of the CBI, said: The UKs poignant dependence on air freight, generally for high-value production and only in time deliveries, equates to that strait plans will be indispensable to plunge into these challenges. For majority businesses banishment of people is the main problem.

TUI Travel, Europes greatest debate operator, that owns the Thomson and First Choice brands, pronounced that the clouded cover had cost it 20 million so far and this would climb by about 6 million a day. TUI has some-more than 100,000 holidaymakers stuck abroad at present, together with 36,000 from Britain.

Thomas Cook, an additional debate operator, pronounced that the intrusion was costing it about 7 million a day.

However, there have additionally been beneficiaries in the camp zone as airfield hotels reported sepulchral business. InterContinental Hotels Group, that owns the Holiday Inn and Crowne Plaza chains, pronounced that the 9 airfield hotels in Britain had been full over the weekend.

Fears are flourishing about the stroke of the ash clouded cover on the monetary health of European airlines. Having been smashed by the retrogression and high fuel costs, most are struggling to survive.

Begbies Traynor, a organisation that specialises in restructuring ruined companies, said that the series of airline- associated businesses on the red dwindle watch list had risen by 40 per cent in the initial 3 months of this year.

Nick Hood, a partner at the firm, said: With the airline industry already in such heightened distress, companies but estimable money pot will be at grave risk of failure.

Dr Ashley Steel, head of ride at KPMG, added: If the shutdown continues it will roughly positively lead to a little carriers apropos financially stressed.