Aeroflot stops selling tickets for foreign flights

RUSSIA / FSU POLITICS - In Brief 19 Apr 2020 by Alex Teddy
On April 17 Aeroflot the Russian national airline declared a moratorium on selling tickets on international flights. This will last till August 1 at least. Coronavirus is galloping in Russia with the 8th consecutive record breaking daily increase in cases on April 17. The government banned all foreign travel on March 27. Therefore Aeroflot concluded it had better stop selling tickets until the policy changes. It is hard to imagine that lockdown will continue into August which is why tickets are on sale. Aeroflot does not want to let people book tickets for the intervening months because if the flights are canceled by the government the airline would have to refund passengers. Aeroflot says the government might authorize flight well before August 1 but at the moment is playing it safe. Sberbank revealed that flight sales are down 94% since the international travel ban. Aeroflot has lost 40% of its value since the coronavirus commenced. Pobeda is the no frill subsidiary of Aeroflot. Pobeda has stopped all flights until May 31. The president promised USD 310 million for airlines on April 15. The details were not spelt out. Aeroflot has been the national flag carrier for 96 years. It is inconceivable that it will be allowed to go under. Smaller airlines such as S7 and Urals Airlines might be allowed to go bust. The USD 310 million package for airlines is about as much as the government subsidy to airlines under normal circumstances.

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