The British government has announced £40 million in compensation for the country's airlines to cover some of the losses arising from the September 11th attacks on the United States.
Passenger numbers have fallen sharply and seats are empty on once-lucrative transatlantic routes. British Airways has been losing £2 million a day.
British transport secretary Mr Stephen Byers said last night compensation under the scheme would cover lost revenue over the period when US airspace was closed after hijacked aircraft slammed into the World Trade Centre.
It will also cover for any extra costs, such as airport and airspace charges and additional costs incurred from diverted aircraft, passengers and crew costs.
"The circumstances . . . are indeed exceptional and therefore merit exceptional assistance," Byers said.
Airlines can submit claims immediately under the scheme, which the British government believes conforms with EU rules.
Britain, along with other governments, is also providing war and terrorism insurance to keep aircraft flying after commercial insurers withdrew the airline's cover. The insurance cover runs until January 23rd, after which the government hopes commercial insurers will step back in.
PA