London taxis finally emerge from gloom of the ash clouds

Londoners are returning to black cabs after their business was hit by the recession and the ash cloud crisis, it was claimed today.

"The early part of this year was just desperate, and worse than when we were in the middle of the recession," said Steve McNamara of the London Taxi Drivers' Association.

"The ash cloud really affected us and was the worst week most people can remember. But in the past few weeks, things are beginning to change.

"We've seen business getting back to something approaching normal levels. People are using cabs again."

The Square Mile was worst hit, with expenses crackdowns and meetings being cancelled by flight disruptions.

"The City is returning to normal now and drivers aren't having to wait for hours in cab ranks between fares," said Mr McNamara. "We're cautious, but we hope we've turned a corner - and the weekend market is doing very well from the number of euro tourists."

Taxi driver Lee Neary, 35, from east London, said: "Business has picked up since the pound went down. I've seen a lot of American tourists now coming over to buy electrical goods."

Another, John Dennehy, 43, said his takings were also hit by the ash cloud stopping flights to London.

Meanwhicle Eco City Vehicles, which makes a green alternative to the traditional cab using Mercedes Vito six-seater vehicles, reported a 30 per cent increase in revenues last year. Chief executive Peter Da Costa said ash-cloud jitters among drivers had eased off and the return of bankers' bonuses had also led to more journeys by taxi.