Say bye bye to Lufthansa and other European airlines: new Russian sanctions will block Asia Flights

[senheiser]

Russia may bite back, block trans-Siberian flights for European airlines
Published time: August 05, 2014 08:29
Edited time: August 05, 2014 11:00
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Reuters / Marcus R Donner


Russia is considering limiting or even completely blocking European flights to Asia that cross Siberia in response to EU sanctions that caused Aeroflot subsidiary Dobrolet to suspend flights on Monday.

Consultations are being held at the Russian Transportation Ministry and the Ministry for Foreign Affairs, a source told Vedomosti daily.

Another newspaper source close to the negotiations said the recent halt of Dobrolet flights, as well as Ukraine’s fees for Russian fights to Crimea, have accelerated the talks. Discussions started shortly after the EU introduced its first round of sanctions against Russia.


Though both ministries refused to officially comment, a person close to the Ministry of Foreign Affairs said that “any unfriendly measures by the EU, including those in the area of air transportation, we’ll be studied and won’t remain without a response.”

British Airways, Air France and Lufthansa are the biggest EU airlines. Lufthansa said it could potentially lose more than €1 billion in three months if it does not use trans-Siberian routes, according to Forbes.

Aeroflot has already seen its stock price fall over 40 percent this year, and stands to lose $200 million in “overflight charges” it collects from foreign airlines that fly non-stop over Siberian airspace, according to airline experts. Losing this revenue could drive the airline into the red.

The airline’s net profit in 2013 was $203.3 million, which should be compared to the $170 million it received from Siberian airspace fees, Bloomberg News reported.

Other countries have overflight fees, but they usually go to the national aviation administrator, and not an airline. The US currently charges $49.95 for all flights that fly over US territory. Aeroflot doesn’t disclose exactly how much it makes foreign airlines pay.

Russia agreed to phase out the traditional royalty collection by January 2014, and make them more cost-related and transparent, but escalating political tensions could derail the plan.

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we should overcharge so they go bankrupt. Aeroflot maybe lose out but all western airlines will get huge economic hit


prepare that these will be replaced by asian airlines

World's largest airlines - Wikipedia, the free encyclopedia

 

[senheiser]

You maybe have monopoly on paper money but we have monopy at being Russia

 

[Pakistanisage]

Legacy Airlines are fighting back the competition from the Discount Airlines but it is a losing battle.

 

[senheiser]

@Schutz @MarkusS @A.P. Richelieu @flamer84 @Informant @VCheng @LeveragedBuyout @Nihonjin1051 @F-22Raptor @gambit @Peter C @vostok @Beidou2020 @Chinese-Dragon @TaiShang @ChineseTiger1986 @Gazprom @GDan @DV RULES

 

[third eye]

Russia would be cutting off its own nose to spite the West.

A lousy move contemplated.

 

[narcon]

Russia would be cutting off its own nose to spite the West.

A lousy move contemplated.

Its a war - Sanctions war.
You do not want Russia to stay silent and do nothing and look stupid - Do you?

 

[Gazprom]

@Schutz @MarkusS @A.P. Richelieu @flamer84 @Informant @VCheng @LeveragedBuyout @Nihonjin1051 @F-22Raptor @gambit @Peter C @vostok @Beidou2020 @Chinese-Dragon @TaiShang @ChineseTiger1986 @Gazprom @GDan

@DV RULES

Russia would be cutting off its own nose to spite the West.

A lousy move contemplated.

West has harmed aeroflot's profitabilitty. So ,aeroflot is preparing for revenge. And it will further burden EU economically. Already,EU is complicit of ethnic cleansing and genocide in Eastern Ukraine.

 

[third eye]

Its a war - Sanctions war.
You do not want Russia to stay silent and do nothing and look stupid - Do you?

Its like losing your head over a piece of tail.

 

[Gazprom]

Its like losing your head over a piece of tail.

Its like losing your head over a piece of tail.

Go read what Paul Craig Roberts ,former assistant to US treasury and putin presidential advisor Sergei Glazyev are saying.

 

[narcon]

Its like losing your head over a piece of tail.

This is a economic war imposed on Russia.
And here you are with Philosophical one liners?
Putin is no Modi (however good) he is former KGB guy...
National interests come first..
But lamantably, people like your mindset, put the national security at the back burner.
How pathetic..

 

[vostok]

I think that this will not happen, it's just a warning.

 

[senheiser]

Russia would be cutting off its own nose to spite the West.

A lousy move contemplated.

50 million vs 1 billion in 3 months (3 biggest european airlines), do the math

Yandex.Translate

also not all flights will be banned its only western flight so their airlines market place gets replaced by asian ones

If there are restrictions on the use of the Trans-SiberiaRoute would have increased the cost of flights to Asia. An unnamed source of the newspaper estimates the damage solely for the three major European airlines , Lufthansa

, British Airways

and Air France

to one billion euros, if the prohibition of three months will be maintained.
The restrictions would not only European airline meeting, reported the newspaper. The local airline, Aeroflot had to losses of around 55 million euros in a period of three months reckoned, because they are of European airlines fees for the Overflight get reported to the paper. Neither the Russian Ministry of transport nor the authority for civil aviation wanted to comment on the report.

 

[Informant]

Russia seems to like to shoot its own feet.

 

[Ahiska]

HAHAHAHAHAHAH
Of course your precious Russia (eventhough you are not Russian) is so important that multi-billion dollar companies will go down.

 

[Raphael]

I fly often between the UK and Asia and was worried about this at first. I normally use Asian airlines (Cathay Pacfic, China Southern, Singapore, Emirates, etc) which are more economical and surprisingly just as comfortable as the major Euro airlines (often even better), but as long they don't get touched .