The International Air Transport Association (IATA) applauded the announcement by the European Commission of a comprehensive programme to provide relief to the air transport sector in the aftermath of extraordinary airspace closures resulting from the ash plume of an Icelandic volcano.

The global airline association estimates that the Icelandic volcano crisis cost airlines more than US$1.7 billion in lost revenue through in the first six days after the initial eruption, during which Europe’s airspace was closed. For a three-day period (17-19 April), when disruptions were greatest, lost revenues reached $400 million per day, according to IATA.

“Lost revenues now total more than $1.7 billion for airlines alone. At the worst, the crisis impacted 29 Per cent of global aviation and affected 1.2 million passengers a day. The scale of the crisis eclipsed 9/11 when US airspace was closed for three days,” said Giovanni Bisignani, IATA’s director general and CEO.

“I applaud Vice Presidents Kallas, Almunia and Rehn for their quick action,” said Bisignani of the EC’s annoucement ofmeasures to assist carriers. “These urgent measures will provide much neededassistance to airlines at a time when theirfinancial resources are stretched,” he said.

IATA highlighted its particular support for three longer-term elements of the European announcement, in particular the need for a Single European Sky. “The events of last week clearly showed the need for the Single European Sky. I fully support Vice President Kallas in his efforts to accelerate the appointment of a European Network Manager by the end of this year.

But that is one element of the Single European Sky. We also need to accelerate plans for the implementation of functional airspace blocks and a performance framework to ensure that the system is delivering efficiencies. We are looking for a strong commitment from Europe’s transport ministers on all three of these elements when they meet on 4 May,” said Bisignani. IATA estimates that the reduced delays and greater efficiency that a Single European Sky will bring will have broad benefits. It is estimated that it will save €5 billion and reduce carbon emissions by 16 million tonnes a year.

Bisignani also highlighted the importance for financial compensation saying the event was completely beyond the control of airlines but insisting the industry was not seeking bailouts. While promising some form of financial assistance, Siim Kallas, Europe’s transport commissioner, said the Commission was inclined to approve state aid for carriers based on the extraordinary nature of the week-long event but warned that any assistance must respect “a level playing field” and be directly tied to thecrisis.