What economic aftershocks will Icelands volcanic eruption cause in Europe?
The economic impact is already being felt in the United Kingdom and some of the European Economic Union’s members, Spain being the latest to ground all aircraft. And while it’s estimated by the International Air Transport Association (IATA) that the loss to commercial airlines may exceed $200 million a day and run into the billions, all aircraft is being affected including air cargo flights and NATO military missions. The ripple effect of the disruption of air travel on a such a scale could be devastating. Already some historians have compared the loss of civilian air transportation to that on a level not seen in Europe since World War Two. Relatively recent history provides clues to the economic consequences of fleets of aircraft being grounded. After the terrorist attacks in New York and Washington, D.C. All civilian aircraft were grounded for more than a week. What followed was an immediate contraction of the economy and a sharp dip in economic activity leading to a recession. The v
