The International Air Transport Association (IATA) has estimated that airlines lost $1.7 billion in revenue during the six days the eruption of a volcano on Iceland spewed ash across the continent, completely closing airspace in the UK and severely disrupting operations throughout the northern part of Europe.
But while the European Commission appeared to encourage member states to “make good” the damage to the airline industry caused by the volcano under provisions for state aid in the event of natural disasters or exceptional circumstances, it also warned its members to heed Europehan Union policy against inconsistent or discriminatory application of the aid among various states. So effectively, the Commission still has to make it completely clear to EU member states the extent to which they can help to patch up holes in airline balance sheets resulting from the crisis caused by the volcanic ash emergency.
