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They are paying care... they have to cover alternative travel or accomodation. They are still paying for gates & slots in airports but are not recouping on tho
by buro9 17y ago
They are paying care... they have to cover alternative travel or accomodation.
They are still paying for gates & slots in airports but are not recouping on those.
They are still paying for staff who now sit around.
They have an overhead of a communication system that is busy, combined with increasing demand for telephone support.
The only thing they're saving on is fuel, but everything else they're still covering and additionally they're covering the lowest amount they can get away with for the passengers who are stranded.
As for the passengers stranded, they have their only issues. Most would budget X on a trip that now will be rising substantially.
And that's before we touch businesses who really want their resources back earning good revenue.
Everyone is losing.
Except for some people. I live in West London and looking out and seeing a sky devoid of planes is a very very rare thing. And it's a beautiful day and I swear there are more birds than normal around. Quite lovely really.
It kinda explains this stuff here: http://news.bbc.co.uk/1/hi/uk/8624663.stm http://news.bbc.co.uk/1/hi/uk/8624663.stm
[quote]
The IATA said its estimate of a $200m daily loss of revenues was "initial and conservative".
"In addition to lost revenues, airlines will incur added costs for re-routing of aircraft, care for stranded passengers and stranded aircraft at various ports," its director of corporate communications, Anthony Concil, said.
KPMG was less conservative in its estimates, predicting a £200m loss in traffic revenues as a result of the UK shutdown, assuming that all ticket sales would have to be refunded to passengers.
[/quote]
I'd say KPMG was rather silly, in that obviously passengers will need to get back and there's a bottle-neck at the channel tunnel and ferry ports. However as care is being paid they could actually end up paying out more than the cost of travel and make a loss even in the time after the skies open.