Ash cloud to cost Irish airlines over €71m

IRISH AIRLINES have estimated the cost of meeting claims arising from flight cancellations caused by the Icelandic volcanic eruption…

IRISH AIRLINES have estimated the cost of meeting claims arising from flight cancellations caused by the Icelandic volcanic eruption at more than €71 million.

Aer Lingus, Ryanair and Aer Arann have received almost 1.2 million requests for flight refunds and reimbursement of expenses from would-be travellers whose flights were disrupted by the ash cloud.

Under EU passenger rights regulation 261/2004, airlines must reimburse reasonable expenses incurred by passengers affected by volcanic ash. These include hotel and food bills.

Aer Lingus said it received “a very large volume of requests for refunds and compensation claims” after cancelling 2,128 flights. More than 272,000 Aer Lingus passengers were affected, and it has provided over 60,000 refunds, with many of these claims made on behalf of a group or family.

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The airline estimates the overall cost of the disruption will be €20 million.

An Aer Lingus spokeswoman said the average claim payout was €600. “The exact cost is not yet apparent as we are still receiving claims on a daily basis, but we are confident that it will exceed this amount [€20 million].”

Ryanair cancelled 9,400 flights over 18 days due to the ash, affecting some 1.5 million passengers.

At a press conference in London yesterday, chief executive Michael O’Leary said 1.1 million claims for refunds and reimbursement had been processed by the airline to date, with approximately 100,000 outstanding.

Ryanair estimates the refunds and reimbursement will cost approximately €50 million. The airline declined to provide an estimate of the average claim processed or provide details on the number of claims refused.

The ash cloud cost Aer Arann between €750,000 and €1 million, according to a spokesman. He said the airline had paid out several thousand claims and was still processing them.

For some passengers the process of claiming has not been smooth.

Norman Leeson of Malahide, Co Dublin, said he applied to Aer Lingus for reimbursement after his wife’s flight from London was cancelled at the height of the ash cloud crisis. He had not received reimbursement for the April 18th flight despite waiting two months.

Chief executive of the Consumers’ Association of Ireland Dermott Jewell said it had received some complaints from people who had not been reimbursed.

“We’re of the opinion that everyone is holding back as it’s very quiet. It’s either the calm before the storm or everyone is getting what they want.”

Passengers seeking airline compensation arising from the ash cloud can use a European Commission complaint package available at eccdublin.ie.