Russia pledges massive bailout for its high and dry airlines

Russian Prime Minister Mikhail Mishustin today announced Russian government’s new plan to help national air carriers to reimburse passengers whose flights were canceled due to sanctions imposed on Russia over its aggression in Ukraine.

After Russia’s unprovoked invasion of neighboring Ukraine, the United States, European Union and the United Kingdom closed their airspace to all Russian planes as part of sanctions introduced against the country.

Russian in turn closed its airspace to the countries that issued the flight ban on Russian carriers.

The countries banned from Russia’s airspace are:

  • Albania
  • Anguilla
  • Austria
  • Belgium
  • British Virgin Islands,
  • Bulgaria
  • Canada
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark (including Greenland, the Faroe Islands)
  • Estonia
  • Finland
  • France
  • Germany
  • Gibraltar
  • Greece
  • Hungary
  • Iceland
  • Ireland
  • Italy
  • Jersey
  • Latvia
  • Lithuania
  • Luxembourg
  • Malta
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Romania
  • Slovakia
  • Slovenia
  • Spain
  • Sweden
  • UK

Russian Federal Agency for Air Transport (Rosaviatsiya) said that planes from banned countries could only enter Russia’s airspace with special permission.

Under the proposed new airline subsidy plan, Russian air carriers will receive 19.5 billion rubles ($238 million) in bailout funds, Russian Prime Minister declared.

“The subsidies will be used to refund passengers the cost of tickets on routes that have been canceled due to external restrictions, which will save carriers their own working capital, which means there will be financial resources to ensure flight safety,” the PM said.

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