While the Iceland volcano has brought flights to and from parts of Europe to a stop, even New Zealand is affected.

First, AirNZ has cancelled all flights to Los Angeles, Shanghai and Vancouver because these flights continue to the UK. AirNZ flies to London every day, with a stopover in LA. Flights to Shanghai and Vancouver by AirNZ continue to the UK by other airlines which are part of the Star Alliance. Hotels in stopover cities are full. Passengers will not get a refund from their insurance company if they start their journey when they know they cannot continue. Airlines, including AirNZ, are losing millions of dollars waiting for the volcanic ash to clear.

Secondly, passengers are affected. Some New Zealanders cannot go on holiday or business trips while British people and others cannot get home. Aucklanders have offered to help overseas people who are stuck in Auckland with nowhere to go.

It is interesting that Auckland and Wellington airports were closed for a few days in 1995 and 1996 when Mt Ruapehu in the Central North Island erupted. Volcanic ash can damage the engine of planes. Cancelled flights cost AirNZ $2.4m at that time. The cost for these last few days will be much higher.