Friday, April 16, 2010

4-mile high ash plume from Iceland is KILLING airlines...


Ash from the Icelandic volcano could cause problems for the airline industry for six months, in the worst airline industry disaster since 9/11.

GENEVA, April 16 (AP) - (Kyodo)—The airline industry is losing a "conservative estimate" of $200 million per day in revenues due to disruptions caused by the eruption of an Icelandic volcano, theInternational Air Transport Association said on Friday.

"In addition to lost revenues, airlines will incur added costs for re- routing of aircraft, care for stranded passengers and stranded aircraft at various ports," it said in a statement.
Airports are closed and flights canceled across large parts of Europe as aviation authorities fear the ashes from the volcano could damage airplane engines.

If planes were to fly into the ash cloud, they could face a situation like that 28years ago, when British Airways Flight 009 lost all four engines.

Airlines stocks were trounced today, and the selling was indiscriminate:

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