15:32 29.07.2019

Georgian Airways' losses from ban on flights from Russia at around $25 mln

2 min read
Georgian Airways' losses from ban on flights from Russia at around $25 mln

Russia's decision to ban direct air travel with Georgia has significantly harmed Georgian Airways and put it in a difficult financial position, the airline said in a statement.

"The airline has had to return 80% of the tickets that had already been sold. Additionally, the number of those who want to obtain air tickets has sharply decreased, leading to the loss of a total of about $25 million for the airline," the statement reads.

Georgian Airways' management has asked the government to provide financial assistance. The government decided to compensate part of the company's losses. On July 24, the government decided to provide up to 600,000 euros to subsidize flights from Russian cities to Tbilisi and Batumi through Yerevan and back.

To that end, United Airports of Georgia (under the Ministry of Economy and Sustainable Development) will conclude relevant deals with airlines. The maximum subsidy per passenger is 90 euros (excluding VAT). The airlines will have to provide uninterrupted service for no more than one year, with at least two flights a week.

Currently, Georgian Airways is flying to Russia through Yerevan with support from a partner airline in Armenia. The Turkish airline AtlasGlobal has said that it is also willing to conduct transit flights between Moscow and Tbilisi. In mid-July, it opened an Istanbul-Tbilisi-Istanbul route.

On June 21, Russian President Vladimir Putin signed a decree banning Russian airlines from flying to Georgia starting July 8. Tour operators and travel agents were advised to refrain from selling holiday tours to Georgia.

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