BA seeks compensation for volcanic ash losses

British Airways is demanding Government compensation for loss of revenues resulting from the volcanic ash cloud.

The closure of European air space is costing the airline between £15 million and £20 million a day, and disagreement between airlines and authorities over the extent of the flight restrictions continue.

On Sunday, BA ran a test flight which is claims demonstrated that the current levels of restriction are unnecessary.

Travel companies are also feeling the pain, with TUI estimating the daily cost of the disruption at between £5 million and £6 million, while Thomas Cook puts the cost at £7 million so far.

According to a BBC report, the European Solidarity Fund, which exists to provide aid to EU members afflicted by natural disasters, may be a source of compensation for firms whose balance sheets have been badly hit.

Meanwhile, plans to reopen British airspace today have been scaled back as the volcanic eruption in Iceland shows signs of intensifying.

Some UK airports may be operational but the flight ban is not expected to be lifted at Heathrow or Gatwick.

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