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Volcano fallout: Ash Attack hits airlines where it hurts most. USD2bn impact for aviation and rising

Analysis

Aviation is vulnerable to almost every possible change in circumstances, be it economic, health scares, terrorist attacks - or even - as in the case of volcanic dust clouds over Europe - the slightest change in the wind. This event will be especially costly for airlines, as well as a vast array of affected businesses. What differentiates the Ash Attack from most other negatives is that such events generally cause a sudden drop in demand: Here the problem is a lack of supply, where demand is there.

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