If the closure of airspace to airlines from Europe, the United States, and Canada by Russia was not enough (as a reciprocal measure), now the Eurasian giant has added that insurance companies are not willing to cover expenses over Russian territory. In addition, some companies report fuel shortages on several bases.
Many foreign airlines, specifically those operators based in the European Union, the United States, the United Kingdom, and Canada, have stopped providing services to Russia due to the extensive airspace restrictions imposed in the wake of the country’s invasion of Ukraine.
Days prior to the conflict, insurers around the world have stopped writing some crucial types of insurance for companies with operations in Ukraine initially, which was then extended to Russia.
This decision seriously harms aircraft, which are at risk of unwanted government actions, including war, expropriation, and forced sales of assets. Indeed, the fear of expropriation has grown since Russia began dealing with the nationalization of more than 500 Western aircraft owned by various lessors.
See also: By decree, the Russian government moves forward with the nationalization of commercial aviation
The first airlines to suspend operations to Russia, without restrictions, were Azerbaijan Airlines and Buta Airways, both based in Baku, Azerbaijan.
These airlines had up to five daily flights between Baku and Astrakhan, Moscow/Domodedovo, Moscow/Vnukovo, Moscow/Zhukovsky, and Mineralnye Vody.
Today, Friday, it was joined by Kazakhstan-based Air Astana and Pegasus, Turkey’s leading low-cost carrier. Both carriers declared having problems with insurers, which will in principle keep operations suspended until the end of March.
The Kazakh company had four daily flights from Almaty, Karaganda, and Nur-Sultan to Moscow/Domodedovo, St. Petersburg, Omsk, and Novosibirsk. But the biggest loss with the Middle East and Asia, so far, goes to Pegasus. This one operated up to eight daily flights from Antalya and Sabiha Gokcen to Moscow/Domodedovo, Grozny, Krasnodar, Makhachkala, Mineralnye Vodu, and St. Petersburg.
By midweek, Korean Air and Asiana Airlines had joined the suspension of flights to Russia. This was after the Russia-based refueling service provider had informed them that they can no longer refuel their planes at the Moscow airport. This was reported by Reuters citing a Korean Air representative.conflictAzerib
Sanctions continue to choke Russia’s already weakened airline market. In turn, they have had consequences for the companies that operate the Asia-Europe corridor on a daily basis.
Sky Gate Airlines recently ceased operations. The company is based in Moscow but mostly operated between different cities in Europe and Asia. Its two Boeing 747-400 (F) aircraft were transferred to Azerbaijan-based Silkway Airlines.
Passenger and cargo airlines flying daily between Asia and Europe had to increase their total flight time by 20% to 35%, in some cases with intermediate stopovers.
