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| BA seeks compensation for chaos | BA seeks compensation for chaos |
| (10 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 also said that its test flight through the no-fly zone had revealed "no variations in the aircraft's normal operational performance". | BA also said that its test flight through the no-fly zone had revealed "no variations in the aircraft's normal operational performance". |
| Chief executive Willie Walsh called on the government to adopt new policies that would "allow us to resume flying". | |
| 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. |
| BA said the extraordinary circumstances were beyond its control | |
| 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. |
| On Sunday, BA ran a two-and-a-half-hour test flight over the Atlantic to assess any damage caused by the ash. | On Sunday, BA ran a two-and-a-half-hour test flight over the Atlantic to assess any damage caused by the ash. |
| Mr Walsh said: "The analysis we have done so far, alongside that from other airlines' trial flights, provides fresh evidence that the current blanket restrictions on airspace are unnecessary. | Mr Walsh said: "The analysis we have done so far, alongside that from other airlines' trial flights, provides fresh evidence that the current blanket restrictions on airspace are unnecessary. |
| "We believe airlines are best positioned to assess all available information and determine what, if any, risk exists to aircraft, crew and passengers." | "We believe airlines are best positioned to assess all available information and determine what, if any, risk exists to aircraft, crew and passengers." |
| Funding available | Funding available |
| The airlines believe they are due compensation because the decision of whether to fly or not has been unfairly taken out of their hands. | The airlines believe they are due compensation because the decision of whether to fly or not has been unfairly taken out of their hands. |
| The airlines believe they have a moral case for compensation from taxpayers, in that they have been deprived of the ability to make their own judgements about whether it is safe to fly Robert Peston, BBC business editor Read Robert Peston's blog here | |
| Independent airline analyst Saj Ahmad said the challenge would be ensuring that any potential compensation is equally distributed. | Independent airline analyst Saj Ahmad said the challenge would be ensuring that any potential compensation is equally distributed. |
| "Low-cost airlines may feel aggrieved if they receive smaller payouts because they benefit from lower costs than rivals," he said. | "Low-cost airlines may feel aggrieved if they receive smaller payouts because they benefit from lower costs than rivals," he said. |
| "But for a carrier like BA that has already lost nearly £50m due to a cabin crew walkout, every penny counts - not least because some of this money will have to be used to compensate and refund passengers." | "But for a carrier like BA that has already lost nearly £50m due to a cabin crew walkout, every penny counts - not least because some of this money will have to be used to compensate and refund passengers." |
| 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. | 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. | 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. |
| 'No compromise' | 'No compromise' |
| 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. |
| 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 4.3% in afternoon trading in London, to 224.8 pence. | British Airways shares had fallen by 4.3% in afternoon trading in London, to 224.8 pence. |
| The German flag carrier Lufthansa said it had not put in any claim at this stage but was looking at its options. | The German flag carrier Lufthansa said it had not put in any claim at this stage but was looking at its options. |
| Air France-KLM is also believed to be pursuing compensation from the EU. | Air France-KLM is also believed to be pursuing compensation from the EU. |
| Meanwhile, Peter Long, the chief executive of TUI, Europe's largest travel operator, told the BBC that the company had written to the government asking for recompense. | Meanwhile, Peter Long, the chief executive of TUI, Europe's largest travel operator, told the BBC that the company had written to the government asking for recompense. |
| TUI says the crisis has cost it £20m so far and was continuing to cost it about £5m to £6m a day. | TUI says the crisis has cost it £20m so far and was continuing to cost it about £5m to £6m a day. |