London - Britain has played down the prospect of compensating airlines for losses suffered when ash from an Icelandic volcano grounded flights earlier this year.
"We understand the concerns raised by those companies facing an unexpected bill so soon after the recession, but while the government has not ruled out providing support for airlines and other operators, it would be wrong to raise false expectations," the Department for Transport said in a statement.
Britain is battling to rein in a budget deficit running at around 11 percent of national output and said it would struggle to find the money to pay the airlines, even if it was allowed.
"EU state aid clearance would be needed if assistance were to be given, but more importantly, the state of the public finances are well documented and such assistance simply may not be affordable," it added.
The issue is on the agenda for a meeting of European Union transport ministers scheduled for June 24.
The grounding of flights across the continent in April cost airlines in the European Union an estimated 1.5-2.5 billion euros, the EU executive has said.
There was further limited disruption to flights in Britain and Ireland last month after ash from the volcano under the Eyjafjallajokull glacier in Iceland drifted into their airspace, posing a potential hazard to aircraft. - Reuters