Monday, April 19, 2010

European Airport Closures : SIA loss millions per day

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Most European airports were shut down due to the huge amounts of ash and smoke emanating from volcano in Iceland’s . The ash, which is moving slowly toward mainland Europe, poses a threat to aviation safety. This eruption started on April 14, and had caused the world’s largest aviation disruption since the September 11, 2001 terrorist attacks in the United States Thousands of flights across portions of Europe were canceled. This eruption had pro-long until today. SIA (Singapore Airline Ltd) reported that it has been losing at least S$4 million per day since Thursday as a result of airport closures in Europe because of the volcanic eruption in Iceland. As SIA needs to cover accommodation costs for stranded passengers and exclude cancelled flights, if cancelled flight were included, it could be even higher. SIA operates 25 flights to and from Europe daily with more than 20 being cancelled since last April 15.SIA carrier makes around 25% of its revenue from flights to Europe. It flies the Airbus A380 super jumbo to hubs like London, Zurich and Paris, which were all affected by the volcanic ash cloud.

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