The present crisis in Europe over the ash cloud from Iceland is fast moving beyond a joke. Of course, it’s no joke for the thousands of people struggling to get home and stranded all over Europe, but what will happen to the airlines?
BBC Business editor Robert Peston has estimated that BA alone is losing something like £20m a day. And as each day passes, the EU warning is extended to the following day. I’m supposed to be visiting Austria this weekend and it seriously looks like it won’t happen. Of course, I’m not choked about it because I am at least at home and able to just stay home rather than being stranded thousands of miles from home. But how long will this go on?
And what is the implication for the national air carriers if they need governments to bail them out? First the banks, then the airlines? The question will be asked that if the airlines are so essential to national economies then how come they are not already government owned – like the old days?
Who would have thought that in 2010 we would see nationalised banks on the high street and private airlines all over Europe begging to be saved by national governments. Next thing, the private power companies will ask for government help setting up new power stations, err…