Ash-caused flight cancellations likely not covered
Flights remained grounded Friday at many European airports as the ash from the eruption of Iceland’s Eyjafjallajökull volcano drifted across the region, endangering aircraft.
Airlines probably are not covered for revenue lost due to grounded aircraft in this case, said Steven Doyle, London-based business development director of aerospace at Willis Aerospace, a division of broker Willis Group Holdings P.L.C. “That would be my assumption because there is no physical damage,” he said.
Business interruption policies generally are triggered only when physical damage leads to a loss of revenue.
The ash—consisting of fine particles of glass and rock—could damage aircraft engines and other parts, possibly resulting in engine failure, said Paul Hayes, director of air safety at Ascend Worldwide Ltd., a London-based aerospace consultant.
“It can get everywhere in an engine, melt and plate onto different sections,”
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