Companies lose millions because of volcanic ash
19.04.2010, 08:47The ash clouds that are covering most of Europe are causing billions of kroons for airlines and world trade. An even worse news is that the volcano remains active and is spewing new ash into the air, which is likely to create further problems for airlines. Ilona Eskelinen, head of public relations for Estonian Air, was unable to say how much the airline has lost already.
She added that the airline was calculating the losses at present. "It is a unique situation," she said.
Eskelinen added that insurance companies have not yet started to compensate Estonian Air for its losses.
According to BBC, airlines are collectively losing about 2.3 billion kroons a day, to say nothing of the problems caused to passengers who are stranded in airports and companies whose business depends on air transport.
One of the companies that depends on air transport is Elcoteq. According to Jan Kotka, CEO of Elcoteq Tallinn, the plant has supplies until Tuesday. "After that we can manufacture sub-assemblies. We are shipping finished products to Finland by trucks," explained Kotka.
Also courier firms DHL Estonia and TNT Express Worldwide Eesti say that they have switched to road transport.
Travel agency Estravel said yesterday that people should postpone their travel plans until May since there was no speedy solution for the current tourism and transport chaos.
"Even if airlines would be cleared for takeoff in the nearest few years, it would take at least a week to solve this logistical nightmare, bring passengers who are stranded in airports home and put their flight timetables back to order," said Mari-Liis Rüütsalu, head of marketing and communication of Estravel.
By now 20 countries in Europe have closed their airspace by now and no-one is able to forecast when the service coudl return to normal. About 17,000 flights all across Europe were cancelled over the weekend.
Artur Praun, board member of insurance company If Kindlustus, said that the company has received calls as far as from Malaysia. He did not rule out that it could be the largest insurance case of the century.