WRAPUP 9-Ash cloud over Europe deepens travel chaos

* Worst disruption since Sept. 11 attacks

* Nearly three in four European flights grounded

* Chaos costing airlines hundreds of millions of dollars

(Updates with extended closures, weather experts, Obama)

By Mark Trevelyan

LONDON, April 17 (BestGrowthStock) – Europe’s air travel chaos
deepened on Saturday as a huge cloud of volcanic ash spread
southeast across the continent, halting more than three in four
flights and stranding tens of thousands of passengers worldwide.

European aviation agency Eurocontrol said no landings or
takeoffs were possible for civilian aircraft in most of northern
and central Europe because of the ash spewed out by the
Icelandic volcano, which was still erupting.

Many countries closed airspace until Sunday or Monday and
weather experts forecast the cloud would not move far. They said
the plume of ash could even become more concentrated on Tuesday
and Wednesday, posing a greater threat to air travel.

The plume that floated through the upper atmosphere, where
it could wreak havoc on jet engines and airframes, is costing
airlines more than $200 million a day.

Test flights without passengers are taking place in the
Netherlands and other European countries to assess the impact of
the ash on aircraft, the Dutch government said on Saturday.

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For factbox on national airspace closed by ash cloud,

double-click on [nLDE63F11N]

For map of ash cloud movement and airline routes, click:

http://graphics.thomsonreuters.com/RNGS/2010/APR/ASH2.jpg

For more stories on volcano’s impact, click on [nLDE63F189]

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The disruption is the worst since the Sept. 11 attacks on
New York and Washington in 2001, when U.S. airspace was closed
for three days and European airlines were forced to halt all
transatlantic services.

Eurocontrol expected 5,000 flights in European airspace,
compared with 22,000 on a normal Saturday. On Friday it said
there were 10,400 flights compared with the usual 28,000.

“Forecasts suggest that the cloud of volcanic ash will
persist and that the impact will continue for at least the next
24 hours,” the agency said in a statement just after 0900 GMT.

The cloud has forced several world leaders to hastily
rearrange travel plans. U.S. President Barack Obama and German
Chancellor Angela Merkel and others have cancelled trips to
Poland for the funeral on Sunday of Polish President Lech
Kaczynksi, killed in a plane crash in Russia a week ago.

The volcanic eruption appeared to be easing on Saturday but
could continue for days or even months to come, officials said.
[ID:nLDE63G0DE].

U.S.-based forecaster AccuWeather said the ash was in an
area of weak wind flow and was unlikely to move far on Monday.

“The plume is expected to become more concentrated Tuesday
and Wednesday, posing a greater threat to air travel. However,
it is also expected to become narrower, impacting a smaller
area,” it said, adding an Atlantic storm and change in the
direction of the jetstream on Thursday could break up the cloud.

“A southwest jet stream should help clean any remaining ash
plume out of most of Europe and bring some relief for the
aviation crisis,” it said.

Britain’s weather agency told BBC television it was likely
the cloud would remain over Britain for some days.

“The ash hangs around for several days once it has got here.
So we need a change of wind direction that stays changed for
several days. And there is no sign of that in the immediate
future,” Brian Golding, head of Met Office forecasting, said.

Britain, Denmark and Germany were among the countries to
announce their airspace was closed for the whole of Saturday and
German carrier Lufthansa (LHAG.DE: ) said it had no planes in the
air anywhere in the world.

However, unless the cloud disrupts flights for weeks,
threatening factories’ supply chains, economists do not think it
will significantly slow Europe’s shaky recovery from recession
or affect second-quarter gross domestic product figures.

“The overall impact should be very limited even if the
problem persists for a day or more,” IHS Global Insight chief UK
and European economist Howard Archer said. [ID:nLDE63F1NL]

Airlines, however, could suffer a severe financial blow.

France said Paris airports would remain closed until at
least Monday morning. Italy extended a shutdown of its northern
airports until then. The Dutch extended a shutdown to Sunday
morning and Switzerland closed airports until 1200 GMT Sunday.

Europe’s biggest tour operator, TUI Travel (TT.L: ), said it
was cancelling all trips until at least 0800 GMT on Sunday.
British Airways (BAY.L: ), hit by strikes last month that cost it
around $70 million, cancelled all Sunday’s flights.

Ireland’s Ryanair (RYA.I: ), Europe’s biggest low-cost carrier,
has cancelled all flights to and from northern European
countries until 1200 GMT on Monday.

The fallout hit airline shares on Friday with Lufthansa,
British Airways, Air Berlin, Air France-KLM, Iberia and Ryanair
down between 1.4 and 3.0 percent. [ID:nLDE63F07I].

ASIAN, U.S. BACKLOG

Disruption spread to Asia, where dozens of Europe-bound
flights were cancelled and hotels from Beijing to Singapore
strained to accommodate stranded passengers. In Singapore, 45
flights were cancelled on Saturday, Changi Airport said.

An official at Eurocontrol said the number of
transatlantic flights arriving in Europe was only one third to a
quarter of the usual number for a Saturday.

American Airlines, a unit of AMR Corp (AMR.N: ), said it was
able to operate flights to and from Spain and Italy but had
cancelled 56 others to and from Europe, the same as on Friday.

The U.S. military had to re-route many flights, including
those evacuating the wounded from Afghanistan and Iraq, a
Pentagon spokesman said.

The volcano began erupting on Wednesday for the second time
in a month from below the Eyjafjallajokull glacier, hurling a
plume of ash 6 to 11 km (3.7 to 6.9 miles) into the atmosphere.

By Saturday this had fallen to 5 to 8 km (3 to 5 miles).

“The eruption could go on like that for a long time,” said
Bergthora Thorbjarnardottir, a geophysicist at the
Meteorological Office. “Every volcano is different and we don’t
have much experience with this one — it’s been 200 years since
it erupted last.”

Investing Analysis

(Reporting by London, Geneva, Dublin, Paris, Amsterdam,
Brussels, Reykjavik, Washington, Frankfurt and Berlin newsrooms;
Writing by Mark Trevelyan; editing by Alison Williams)

WRAPUP 9-Ash cloud over Europe deepens travel chaos