Finding local angles on Europe’s air-traffic gridlock

This NASA image shows ash from Iceland’s erupting Eyjafjallajökull Volcano drifting over northern Europe on April 16, 2010.

Who would’ve believed that fluffy volcanic ash from peaceful Iceland could cause global air-traffic gridlock ?

Aside from the aggravation factor, this disruption will take an enormous economic toll on people and industries already suffering from financial malaise. Here’s a recent New York Times piece about some aspects of commerce – such as perishable foods – already affected.

This CBC piece from Canada is a bit more optimistic but includes angles you may wish to pursue locally.

Even if the grounding of flights over Europe is lifted, as hoped, sometime Sunday, the worldwide backlog of travelers, tourists and cargo will need weeks to decompress.

Some of the stall may be affecting business and commerce in your region.

The National Oceanic and Atmospheric Administration (NOAA) has extensive economic information on its website; it might be handy for pulling stats on historical events in your region or just to understand methodology. It includes handy tabs showing the annual economic costs of events ranging from thunderstorms to drought to – yes, volcanic ash and dust storms.

Here are a few areas to check:

Tourism. Check with hotels, resorts and attractions in your area to locate stranded tourists and business travelers. Is their presence a boon to hostelries or a glitch in a full booking schedule? Are they offering discount rates or other succor to guests? How does this ripple out to rental cars, restaurants and other resources?

Check with travel agents, tour operators and groups that tend to travel together – such as schools, church organizations, senior citizen groups – about what they’re hearing vis a vis potential delays.

Business travel. Are video-teleconferencing companies seeing an uptick in business? Are local company execs stranded in Europe?

Airlines. Survey your local airlines to determine how they fare in the domino effect. Don’t just ask about botched flight schedules – though an explainer piece on how logistics staff scrambles to reroute and rebook would be interesting — try to get a feel for the fallout on landing fees, aircraft fuel and food sales, addition or subtraction to airline-concession business and other immediate dollars-and-cents issues. AP reports that the International Air Transport Association in Geneva estimates the disruption is costing the industry $200 million a day, and many airlines’ shares have taken a hit.

Check with the Air Transport Association of America for other statistics and information.

Cargo. Check with airport cargo operators and supply chain/logistics managers at large local firms about what they’re experiencing and what costs they expect to incur as a result of any delays. Are any perishable products once destined for Europe languishing unsold? Flowers, fish, computer chips, cell-phone parts, some car parts and pharmaceuticals are among the products often shipped by air.

Insurance. Be sure to ask everyone you interview who their insurance carrier is and whether or not they expect to file claims for business losses. Talk to insurers about what they’re anticipating.

Travelers who purchased trip insurance may be out of luck, according to this BBC piece. Some policies may not cover natural disasters, such as the fallout of volcanic ash. If you’re on a personal finance or consumer beat, you’ve got a perfect news peg for an explainer and infographic telling summer travelers about the pros and cons of purchasing a trip policy.

Local disasters. If your region is prone to flooding, earthquakes, drought or other natural events, talk with local firms about preparedness plans.

A few months ago, for example, I visited the Tabasco sauce factory in Louisiana. Their main asset is the mush made of fermented peppers; it must age for four years (in oaken barrels purchased used from the Jack Daniels distillery) before being usable. If the mush is lost, no Tabasco sauce for four years. So they store it in 20 different locations across the hemisphere, to mitigate risk. Find out how your big employers and producers diversify to lower their own exposure in the event of a natural disaster. Or how tourist attractions, convention centers and the like prepare for the worst. Could be the germ of some really detailed and interesting biz features.