Tuesday, April 20, 2010

Volcano ash fallout costing airlines $1B - Flight industry seeks bailout for worst crisis since 9/11

"Airlines demanded compensation from the EU Monday for the more than $1 billion US in losses they've incurred so far as a result of the volcanic ash that has disrupted airspace in Europe. At the same time, they criticized European governments for relying too much on scientific theory — not fact — in their decisions to ground flights across the continent. Canada's air travel industry is being affected, with up to $4 million Cdn. being lost daily. Airline analyst Robert Kokonis has calculated that Air Canada could be losing about $3 million per day and tour operator Air Transat close to $750,000."

Well I was about to launch into a rant against the airline companies for demanding a bailout... and I think I will for a bit. It this what the world has come to for big business? Fail and get magically bailed out by government? Let's see now...er flights have been cancelled for about 5 days = 1 billion $, then extrapolate (whatever that means) that into 365 days = 73 billion the airlines make in a year. And they are saying they can't absorb this loss. If they get bailed out I hope Luftansa has the common courtesy to give the government a reach-around.

Well - my argument goes equal for Air Canada.

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