President Vladimir Putin has signed a 20 percent increase in airline fees. Credit: Gavriil Grigorov/AP
Vladimir Putin is raising airline fees for using Russian airspace by one-fifth as he struggles to raise hundreds of millions of dollars more for the war against Ukraine.
The Kremlin has signed an increase on 20% of fees levied on airlines from Russia's allies and neutral countries in recent weeks, following the loss of revenue for western carriers who were forced to take a detour due to sanctions.
The revelations came as Ukrainian aviation officials began laying the groundwork for reopening parts of the war-torn country's airspace over the next 18 months, whether the war continues or not.
Meanwhile, analysts are closely monitoring market reactions in Russia to a thwarted mutiny over the weekend, when troops under the command of mercenary leader Yevgeny Prigozhin made it to Moscow within hours before turning back when an agreement was reached.
Monday has arrived. declared a public holiday in the Russian capital as part of security measures, although the stock exchange will operate as usual.
Prior to the war, charging airlines the so-called flight fees was a profitable business, bringing in 1.7 US dollars. billion (£1.3 billion) into the Kremlin's coffers each year due to the size of the country and the importance of the east-west flight route.
However, Western sanctions mean many airlines have been forced to avoid Russian airspace since Putin ordered his troops to attack Ukraine 16 months ago, extending their flight times by several hours.
Senior industry sources said that Putin is forced to increase the amount charged to those airlines that continue to use Russian airspace in order to compensate for this lost money.
In Ukraine, aviation sources said the airport in the eastern city of Lviv is likely to be the first to be reopened, providing an air bridge for people and goods traveling to and from the West. The discussions took place last week during the Ukraine Recovery Conference in London.
Air India chief Campbell Wilson supported the decision to continue flying over Russia Photo: Prakash Singh/Bloomberg
The decision to fly over Russia or not is one of the most contentious issues in the aviation industry.
State-backed Chinese airlines use Russian airspace on their way to Europe and the UK. Such flights didn't make much of a difference until recently as China's borders are gradually reopening following President Xi's cancellation of the zero Covid policy. allowing Russian oligarchs to buy up vast tracts of property in London.
Turkish Airways, Emirates, Etihad and Qatar Airways also use Russian airspace. Some also continue to fly to Russian destinations.
Asked what he thinks of the situation, Akbar Al Baker, chief executive of Qatar Airways, which owns a 25% stake in IAG, owner of British Airways, said: «This is a very political question and I would not like to answer it.»< /p >
While Mr. Al Baker declined to broach the subject of Russian aircraft overflights, he lashed out at environmental campaigners who called for greater restrictions on flights.
Speaking to reporters during a press conference at Paris Air Last week, he said: «Aviation is not the culprit in CO2 emissions.
«We fully support the sustainable growth of aviation. The ships are much larger. Cars, many more power plants, much more. But we are the biggest target of this CO2 emissions event.
“And I would really like the aviation industry… to provide the general public with the right information that aviation is not responsible for CO2 emissions.
Aviation accounts for only 2.6% of the world's CO2 emissions, said Mr. Al Baker.
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