Into the Ash Can

The ash cloud that resulted from Iceland’s volcano grounded flights across Europe and cost the airlines billions. Now that flights have resumed again, what have we learned?

First, systems are adaptive. Some 9 million people were affected. Some re-routed. Some drove. Many just camped out at the airport. There’s some comfort in numbers. Because so many were stranded, thousands of beds were brought in to the terminals.

Second, bad news for the airlines isn’t bad for everyone. Travelers may have been stuck, but they still spent their travel dollars. But look out for the airlines looking for another bail out.

Finally, Europe has another thing to learn from the Yanks. Alaska Air has been flying around volcanic ash ever since the Mount St. Helens blast in 1980. They have detailed training and procedures that could have kept much of Europe’s fleet in the air. But no one asked.

Flying’s a great way to travel. But the old saw still applies: “Time to spare, go by air.”

Douglas R. Tengdin, CFA
Chief Investment Officer
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By |2014-09-05T18:43:45+00:00April 22nd, 2010|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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