British Airways says a test flight conducted Sunday has provided fresh evidence that blanket airspace restrictions are unnecessary and should be lifted. The airline's chief executive Willie Walsh yesterday took a two-hour flight at 40,000ft which turned up no sign of damage to the aircraft or its engines. The results prompted BA to call on the Government urgently to adopt new policies which would allow airlines to resume flying. But the BA findings contradicted information from military sources. A senior Western diplomat said several Nato F-16 fighter jets that flew through the ash cloud had suffered engine damage, saying glass-like deposits were found inside the planes' engines. The BA experiment, however, will reinforce the case being made by commercial airlines to return to the skies. The crisis is estimated to be costing the European aviation industry more than £130m a day. The Association of European Airlines warned that the ash cloud would force some airlines out of business in the next week or two. AEA information manager David Henderson said: "There are probably 100 to 150 airlines in Europe, some large, some small, some tiny, and some which are not going to be around in a week or two's time, that's for sure. He went on: "At any given time, and particularly at the end of 18 really, really tough months, there are a number of airlines which are clinging on with their fingernails. "A five-day, 10-day suspension of service is not going to be sustainable for them." BA itself said the airspace closure was costing it between £15m and £20m a day. Mr Walsh said: "We continue to offer as much support as we can to our customers, however, these are extraordinary circumstances that are beyond all airlines' control. "To assist us with this situation, European airlines have asked the EU and national governments for financial compensation for the closure of airspace. "There is a precedent for this to happen as compensation was paid after the closure of US airspace following the terrorist events of 9/11 and clearly the impact of the current situation is more considerable." Mr Walsh's words came after the International Air Transport Association (Iata) slammed Europe's response to the crisis. Iata branded the situation "embarrassing" and expressed dissatisfaction "with how governments have managed it, with no risk assessment, no consultation, no co-ordination, and no leadership". Chancellor of the Exchequer Alistair Darling said he understood that BA and other airlines were losing money, but said the most important thing for the Government was to focus on how to get affected passengers home. Source: Sky News