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Air Canada
Symbol AC
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Globe/CP say Air Canada, others hit by air restrictions

2023-04-24 09:34 ET - In the News

Also In the News (C-ONEX) Onex Corp
Also In the News (C-TRZ) Transat AT Inc

The Globe and Mail reports in its Monday edition that Russia barred Canadian, American, British and European Union operators from its airspace more than a year ago in response to airspace prohibitions against it by those states and others that support Ukraine. A Canadian Press dispatch to The Globe says that European airlines are among the most affected, having to reroute planes on hours-long detours to reach Asia and parts of the Middle East. Canadian carriers are affected, too, with planes en route to East Asia and South Asia forced to skirt around Russian airspace daily. The detours mean longer trips, greater fuel and labour costs and ultimately higher fares for passengers amid soaring inflation and already pricey international travel. "It's definitely a negative for U.S. airlines and for Canadian airlines. It is definitely an issue," said Helane Becker, analyst with TD Cowen. Former Air Canada chief operating officer Duncan Dee told CP, "The optimal flight route between Canada and Southeast Asia and everything in between would have you pass through parts of Russian airspace, from the point basically north of the Korean Peninsula and then down." Routes particularly affected are Vancouver-Hong Kong and Toronto-Delhi.

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