REFILE-FACTBOX-Industry impact on day 5 of volcano disruption

(Corrects to change pepperoni to chilli peppers in sixth
paragraph; also corrects story link in first paragraph)

April 19 (BestGrowthStock) – Airline industry group IATA called for
steps to reopen European airspace shut down by a volcanic ash
cloud as the disruption entered a fifth day. [ID:nLDE63I007]

Below are some of the impacts on industries ranging from
fashion and fish to car rentals to electronics.


The world’s largest fish farmer, Norway’s Marine Harvest
(MHG.OL: ), said it would reduce salmon harvest volumes from
Monday and that salmon exports to Asia, North America had been

Iceland’s trade council said some fresh fish supplies were
now being fed into frozen fish supplies, but most of Iceland’s
fish exports are sea-based and so unaffected. [ID:nLDE63I0FX]

U.S. grocer Whole Foods Market Inc (WFMI.O: ) said its stores
on the east coast could see tighter supplies of fresh Atlantic
salmon, which is sourced for those stores from Scotland.

Peter Grundhoefer, a top produce wholesaler in Frankfurt,
said: “This affects all of us in the fruits business. We will
lack beans and chilli peppers from Egypt and fresh herbs from
Israel … (and) exotic fruits like mango, kumquats and physalis
(cape gooseberry) once stocks have been used up in the next one
or two days.”

Thomas Kosmidis, a manager at Frankfurt restaurant supplier
Venos, said: “We are running short of tuna from the Indian
Ocean, Victoria perch from Africa, basil from Cyprus and other
fresh herbs from Israel; lobster from Canada and green asparagus
from California.”

Barbara Hennings, who works at Frankfurt sushi restaurant
Iroha, said exotic vegetables were a bigger problem than fish.

“So far we’re not experiencing any supply bottlenecks and
we’re not having to take dishes off the menu.”

She said tuna was delivered frozen once a month from Spain
so there was no impact there.

Kenya’s horticulture industry is losing $3 million a day and
it will take several weeks to recover even if flights resume
now, its association of exporters said. [ID:nLDE63I0EV]

Belgian discount supermarket chain Colruyt (COLR.BR: ) said
sales of cut flowers such as roses from Kenya and fresh fish
from Iceland came to a standstill on Saturday.


IKEA AB [IKEA.UL] only transports its goods by ship, rail and
truck, so the Swedish furniture retailer is not experiencing any
supply disruptions.

“The impact we are feeling is our co-workers who can not get
home now from meetings in Europe,” a U.S. spokeswoman said.

German fashion brand Hugo Boss AG (BOSG_p.DE: ) expects a
delay in showing its pre-spring collection to retailers such as
Macy’s Inc (M.N: ) and Nordstrom Inc (JWN.N: ), but a U.S. spokesman
said there would be no impact on stores since those clothes
would not actually ship until the 2010 holiday season.


Dutch mail group TNT NV (TNT.AS: ) said it had switched to
road transport in Europe and was incurring higher costs.

Anita Gupta, Asia Pacific spokeswoman for rival DHL [DHL.UL]
in Singapore, said the group had “increased its trucking
capacity to minimize delays for shipments within Europe. A 3 to
5 day delay is expected for shipments moving between Europe and
the rest of the world.”


Cisco Systems Inc (CSCO.O: ) said companies were turning to
video conferencing to connect executives stranded by the flight
ban in parts of Europe.

“The only evidence is anecdotal, but you will not get a demo
room in any of the Cisco facilities,” said Fredrik Halvorsen,
former CEO of Tandberg and head of the group’s TelePresence
Technology Group. “We have seen a huge spike in usage.”


“Many hotels have been booked out since Friday,” said Petra
Winter, a spokeswoman for the Frankfort tourism office. Of 140
hotels with more than 34,000 beds in Frankfurt, only 20 still
have vacancies.

Guests stranded at Marriott International Inc’s (MAR.N: )
Grosvenor House, one of Europe’s largest hotels, are being
treated to movie night & free cleaning of under-garments,
according to the hotel chain’s Twitter feed.

Car rental companies are seeing a surge in demand as
travellers try to find substitutes for flights.

“We are buying new cars for this” by taking on sooner than
planned deliveries of cars the company already agreed to buy, a
spokeswoman for Europcar (ERUA.PA: ) in Hamburg said.

Rival Sixt AG (SIXG.DE: ) is growing its fleet by keeping cars
longer than the usual six months and recovering vehicles already
moved to used-car dealerships.


Japans’s Fujitsu Ltd (6702.T: ) said its notebook PC shipments
to Europe have been halted temporarily due to the disruptions.
It said there was enough inventory in the region to ensure there
would be no impact on earnings at the moment. Sony Corp
(6758.T: ), Sharp Corp (6753.T: ), Hitachi Ltd (6501.T: ) and
Panasonic Corp (6752.T: ) said they were experiencing no impact.

In Seoul, Kim Seong-bong, a market analyst at Samsung
Securities, said: “If the stoppage of flight services in Europe
… lasts more than a couple of weeks, it will be negative to
technology exporters.”


Giovanni Bisignani, head of the International Air Transport
Association (IATA), estimated airline revenue losses were now
reaching $250 million a day, up from an earlier estimate on
Friday of $200 million. [ID:nLDE63I0GA]

IATA said the economic impact on airlines would be greater
than the Sept. 11, 2001 attacks.

The global Civil Air Navigation Services Organisation
(CANSO) said the air traffic control sector was losing up to 25
million euros ($35 million) a day due to the closure of European
airspace and warned of a significant impact on future

Some airlines in Europe are not going to be in business in
the next week or two due to the volcanic ash cloud that has
affected air travel, the Association of European Airlines said.

British airlines and travel companies are losing tens of
millions of pounds a day, increasing pressure on officials to
give the all-clear to fly again. [ID:nLDE63I07E]
(Compiling by Andrew Callus; Reporting by Reuters bureaus)
($1=.7153 Euro)

REFILE-FACTBOX-Industry impact on day 5 of volcano disruption