British Airways Faces $125 Million Loss Amidst Air Traffic Failure

The UK's air traffic control provider, NATS, has resolved the technical issue that caused extensive flight cancellations and delays, according to the organization's head. The incident, which led to significant disruptions, is not expected to reoccur.

Willie Walsh, the former CEO of British Airways, expressed concern over the financial burden faced by airlines due to the incident, estimating that the industry incurred approximately $126 million in additional costs. He emphasized the need to address who should bear these expenses, pointing out that the air traffic control system responsible for the failure does not contribute financially.

While passengers are eligible to seek reimbursement for accommodation expenses resulting from flight cancellations, no compensation will be provided for disruptions deemed as "extraordinary circumstances."

Despite the resolution of the issue, numerous British travelers remain stranded abroad due to the cancellation of 1,500 flights on Monday, with ongoing disruptions on Tuesday. The peak holiday season has further complicated efforts to offer alternative flights promptly.

NATS CEO Martin Rolfe attributed the problem to a non-standard flight plan but assured that measures have been implemented to prevent similar incidents in the future. Ryanair criticized NATS for lacking a backup system, while airlines are diligently working to repatriate affected passengers. EasyJet, for example, has arranged five additional flights from popular destinations in Portugal and Spain to assist in the return of stranded travelers.

NATS is scheduled to submit a detailed incident report to the transport minister on the following Monday. Once repatriation efforts are completed, airlines will need to address the substantial financial consequences resulting from the incident.