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LadyEllen -> RE: Iceland Volcano and the Grounding of European Flights (4/21/2010 2:33:37 AM)
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The government (ie we taxpayers) should not be called on to compensate the airlines for their losses from being grounded. The airlines are private commercial operations and must accept that as such they stand or fall on their own merits, as with any other business, in a world where lawful authority determines in what circumstances they shall operate and that these circumstances may change, one where market conditions may change to their detriment and one where "Act of God" may act on their ability to exploit opportunities - for worse in this case or for better in others.
The argument that they ought to be compensated because they were allegedly "wrongfully prevented from trading," doesnt wash - if thats what they thought then they ought to have raised their concerns earlier with the lawful authorities. Does anyone compensate truckers when the ferries go on strike? How about when, in direct contravention of EU law, French farmers and/or fishermen stop all international road transport with their antics and the French government does nothing?
Airlines should look to their insurers for help if anyone at all should pay up, and perhaps talk to their bankers who after all already have all the taxpayer money they might wish to access. Given BA's merger with a Spanish operator and the annual savings that should generate, there should be more than enough in BA to support bank funding of commercial losses in the form of a loan or other mechanism.
Yes, there may be a strategic question of funding airlines because of the numbers they employ and the businesses they support, but given that this doesnt wash when it comes to manufacturing businesses (even entire sectors), thats a difficult argument to employ.
E
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