UIA assesses losses from imposing sanctions against Russian airlines, tit for tat sanctions at over $35 mln a year
Ukraine International Airlines (UIA, Kyiv) has assessed the losses incurred by the introduction of sanctions against Russian airlines by Ukraine and possible tit for tat at over $35 million a year, the airline's press service has told Interfax-Ukraine.
The company calculated that after imposing the sanctions against Russian airlines, and if Russia applies tit for tat sanctions in response (if direct flights from Kyiv to Moscow, St. Petersburg and Kaliningrad are banned), the loss of UIA would total $19.6 million a year from lost flights, $5.8 million of revenue from the UIA route network would be lost, and $850,000 would be lost every month from the three aircraft used to service the aforementioned flights standing idle. The loss of passenger flow is estimated at 299,000 people a year.
The airline said that the loss from the ban on UIA's aircraft using Russian airspace (introduced last year) to operate transit flights to Kazakhstan, Uzbekistan, China and Thailand totals $6.4 million a year.
As reported, Ukrainian President Petro Poroshenko by his decree of September 16 enforced a resolution of the National Security and Defense Council of Ukraine dated September 2, 2015, on the application of personal special economic and other restrictive measures (sanctions) which applies to several Russian airlines, including Aeroflot.
Similar sanctions have been imposed on the following Russian state airlines: The 224th Flight Unit, VIM-Avia, Gazprom-Avia, Donavia, Kogalymavia, Orenburg Airlines, Polet, Red Wings, Rossiya Airlines, RusJet, RusLine, S7 Airlines, Transaero, Ural Airlines, Yakutia Airlines, and Yamal.