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BA seeks compensation for chaos BA seeks compensation for chaos
(20 minutes later)
British Airways has said it has asked the European Union and the UK government for financial compensation for the closure of airspace.British Airways has said it has asked the European Union and the UK government for financial compensation for the closure of airspace.
BA said other airlines had also done so, adding that there was a precedent for this after the closure of US airspace after the 9/11 attacks.BA said other airlines had also done so, adding that there was a precedent for this after the closure of US airspace after the 9/11 attacks.
The airline estimates that the crisis is costing it about £15m to £20m a day.The airline estimates that the crisis is costing it about £15m to £20m a day.
Virtually all flights in and out of the UK have been grounded since 1100 BST on Thursday because of volcanic ash.Virtually all flights in and out of the UK have been grounded since 1100 BST on Thursday because of volcanic ash.
"This is an unprecedented situation that is having a huge impact on customers and airlines alike," said BA chief executive Willie Walsh."This is an unprecedented situation that is having a huge impact on customers and airlines alike," said BA chief executive Willie Walsh.
"We continue to offer as much support as we can to our customers, however these are extraordinary circumstances that are beyond all airlines' control."
On Monday Prime Minister Gordon Brown said that the European Solidarity Fund, designed to provide aid to EU members hit by natural disasters would be the likely source of any compensation for businesses hit by the disruption.
Funding availableFunding available
However the BBC's political correspondent Rita Chakrabati said it was still unclear how much money would be available and who would be able to access it. "We continue to offer as much support as we can to our customers, however these are extraordinary circumstances that are beyond all airlines' control."
Later today I expect BA to say it believes... that it is safe to resume at least some flying Robert Peston, BBC business editor Read Robert Peston's blog here
The airlines believe they are due compensation because the decision of whether to fly or not has been unfairly taken out of their hands.
On Sunday, BA ran a two-and-a-half-hour test flight over the Atlantic to assess any damage caused by the ash.
Data from that flight is currently still being analysed, but the BBC's business editor Robert Peston expects BA to claim that it is "safe to fly" later on Monday.
Funding
Prime Minister Gordon Brown said that the European Solidarity Fund, designed to provide aid to EU members hit by natural disasters would be the likely source of any compensation for businesses hit by the disruption.
However the BBC's political correspondent Reeta Chakrabati said it was still unclear how much money would be available and who would be able to access it.
Siim Kallas has refused to "compromise on safety"Siim Kallas has refused to "compromise on safety"
Despite the huge losses being incurred, BA said it still had "significant funding" available to allow it to stay in business should flights be grounded for a "considerable period".Despite the huge losses being incurred, BA said it still had "significant funding" available to allow it to stay in business should flights be grounded for a "considerable period".
Before the disruption, the airline had more than £1.7bn in cash reserves to draw on, as well as more than £400m in available credit.Before the disruption, the airline had more than £1.7bn in cash reserves to draw on, as well as more than £400m in available credit.
European airlines have been critical of the way the EU has handled the crisis, and have pushed for the reopening of airspace as quickly as possible.European airlines have been critical of the way the EU has handled the crisis, and have pushed for the reopening of airspace as quickly as possible.
On Sunday, BA ran a two-and-a-half-hour test flight over the Atlantic to assess any damage caused by the ash.
Data from that flight is currently still being analysed, but the BBC's business editor Robert Peston expects BA to claim that it is "safe to fly" later on Monday.
European transport commissioner Siim Kallas said there must be "no compromise on safety", but admitted that a prolonged closure of airspace was "not sustainable".European transport commissioner Siim Kallas said there must be "no compromise on safety", but admitted that a prolonged closure of airspace was "not sustainable".
British Airways shares had fallen by 3.28% by midday in London, to 227.30 pence.British Airways shares had fallen by 3.28% by midday in London, to 227.30 pence.
The German flag carrier Lufthansa and Air France-KLM are also believed to be pursuing compensation from the EU.