SAS seeks volcanic ash compensation

SAS seeks volcanic ash compensation
Scandinavian airline SAS is hoping to emerge financial unscathed from the recent air traffic disruption, with the airline planning to apply for 640 million kronor ($89 million) in EU aid.

“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.

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.

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