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SAS seeks volcanic ash compensation

TT/The Local · 26 Apr 2010, 10:36

Published: 26 Apr 2010 10:36 GMT+02:00

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"We think it's reasonable compensation," said John Dueholm, vice-CEO of SAS.

The figure will be the company's goal when the sector organisation AEA sits down on Monday to open negotiations with the EU's transport commissioner Siim Kallas, reports the Danish Børsen daily.

Dueholm believes that the compensation negotiations with the EU should take into account the fixed costs associated with having planes on the ground, including salaries.

A further issue up for discussion will be the cost incurred by airlines to fund hotel and food expenses for stranded passengers while the Icelandic ash cloud held Europe's skies in its grip.

SAS on Thursday announced the first week of the chaos had cost them 460 million kronor, the airline has now also added a further 180 million kronor for Thursday and Friday. SAS is now demanding the entire sum in compensation.

Story continues below…

International air travel industry body IATA projects that the global cost of the Icelandic ash cloud has cost the equivalent of about 12 billion kronor.

SAS flights are reported to be running as normal on Monday. European skies began to reopen last Thursday and normal service has been in operation since Saturday.

TT/The Local (news@thelocal.se)

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Your comments about this article

14:28 April 26, 2010 by Great Scott
If this clown John Dueholm thinks it's reasonable compensation, then he is living in cloud cuckoo land.

So if SAS cancelled a flight and I lost a day's earnings, would they compensate me, NO.?

Many years ago I was travelling from Dublin to Manchester with SAS and they cancelled the flight, I asked for compensation for the cost of the hotel for the night, as it was the last flight to Manchester, did they compensate me NO.

Go to hell SAS, you deserve it, nothing but a load of hypocritical fat cats.
17:36 April 26, 2010 by Mb 65
SAS are losing millions of Kroner every year. So they should not have lost any money.
23:42 April 26, 2010 by EricNilsson
If a bailout works for GM and AIG (and Lehman Brothers, Goldman Sachs, and Chrysler), what's a few Kroner among friends?
09:52 April 27, 2010 by Twiceshy
Throwing money into a black hole. SAS will never be profitable unless they completely change their business model (which is not going to happen unless the govs of Scandinavia let them go bankrupt).
08:00 April 29, 2010 by CanYouDigIt
Iceland uses geothermal heat to generate power, so SAS should sue Iceland's Power Generation company for allowing their energy production plant to spiral out of control, causing an international pollution incident.

SAS has a very positive International reputation and is well-respected and preferred to fly with. I don't think it's worth government money, but it is worth consideration.

ps Goldman Sachs is now in court defending themselves against the US Government. And G-S will lose.
13:10 May 6, 2010 by BellaY
The eruption of Mt. Eyjafjallajokull has interrupted flights once again. The volcano re-erupted and a change of gusts of wind induced an ash cloud to prevent air travel again. Luckily for travelers this time it was merely overnight and not for days. There's chatter that this volcano may erupt again, triggering delays in air travel yet again. If it is at all achievable, I would recommend not flying into any regions affected by this volcano until it is certain that there will be no more activity from the volcano.
20:15 May 6, 2010 by karex
I can't help but feel sorry for SAS. They did not need this incident at this point in time, when things are so shaky for them. I was surprised that they did take responsibility for caring for passengers due to an incident caused by something beyond their control. Just the hotel costs must have been astronomical. Just wonder if they are required to do so by legislation or if they put themselves out to try to hold on to their passengers.

I was on a business trip overseas and planned to take some days personal vacation. I went through a bit of chaos on the way back but was not technically stranded by the time I was booked to travel. Two of my colleagues however were stranded for two days. SAS took care of them. Nothing to complain there.
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