British Airways and other airlines could receive state aid due to volcano disruption


The European Commission said Tuesday that it might provide airlines that were affected by the Icelandic volcano’s ash cloud with state aid.


Before an official meeting between top European transport ministers takes place on May 4 in Brussels, the E.C. said it would allow aid due to more than 100,000 flights being canceled, as long as no airline receives preferential treatment.


In the days following the closure of European airports, carriers like British Airways and Virgin Atlantic have been vocal for assistance, especially since both thought that Europe was too cautious in closing down airports for five days straight due to the ash cloud.


The airline industry lost an estimated $1.7 billion that was not covered by insurance since losses were caused by a natural disaster.  Furthermore, stranded travelers were left to fend for themselves since European rules do not make it mandatory for airlines to pick up hotel bills and transportation to and from the airport.


Source: Washington Post

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