Report: Russia may ban trans-Siberian flights for EU airlines


Russia may impose restrictions or a ban on European airlines using trans-Siberian routes, in retaliation for the new EU sanctions over Ukraine, Reuters reports quoting the Vedomosti.

If imposed, the restrictions would weaken European airlines' competitive advantage over Asian rivals due to longer flights and higher fuel costs.

The constraints would highly affect Lufthansa (OTCQX:DLAKY), British Airways and Air France (OTCQX:AFLYY), and could lead to potential losses of $1.3B for three months of restrictions.

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Comments (5)
  • P.Jakubovs
    , contributor
    Comments (12) | Send Message
     
    $ 1.3B - will loose Lufthansa alone. Total royalities that Aeroflot receives from all EU carriers are at about $300mln per year. Seems like Russia is winning this game of sanctions...
    5 Aug 2014, 04:52 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (11339) | Send Message
     
    Putin plays chess while the EU plays checkers. Obama plays Candyland.
    5 Aug 2014, 05:56 AM Reply Like
  • leopardtrader
    , contributor
    Comments (3800) | Send Message
     
    Obama says "Russia does not make anything; immigrants are not rushing to Russia "! I hope this is not the way his mind actually works or the way he sees things. If that is true and not a joke then we are all in trouble ! He did not tell us what USA or UK actually makes that immigrants are chasing. But wait..China makes everything. Japan even makes most things as well at higher level ..But immigrants are neither rushing to China or Japan?

     

    On sanctions that is the dumbest bet ever by EU. It opens Russia up to other opportunities. It makes USA/EU seen as bully to the rest of the world and everyone would be careful of investment just in case you happen to disagree politically along the way. Economic sanction should ever be used as a last resort tool and must be global to work. Russia is the largest country on earth with the richest natural resources populated by people with one of the world highest IQ. Maybe they dont make iphones but they lead in space and military aeronautics.
    5 Aug 2014, 06:29 AM Reply Like
  • Sakelaris
    , contributor
    Comments (2682) | Send Message
     
    The sanctions effort is starting to look more and more counterproductive for the US.
    5 Aug 2014, 11:25 AM Reply Like
  • 11146471
    , contributor
    Comments (1379) | Send Message
     
    This is what we are shouting for the beginning of this stupidity.

     

    The followed policy is a dead-end. You impose sanctions, and you get more sanctions back and vice versa, non stop.

     

    We as shareholders and investors have only to lose from this.

     

    Russia is no Trinidad Tobago, or Honduras...
    5 Aug 2014, 11:38 AM Reply Like
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