BELAVIA AIRLINES MIGHT FACE BANKRUPTCY DUE TO THE EU SANCTIONS

The RyanAir airliner, which made an emergency landing in Minsk on May 23, may become the reason for the bankruptcy of the national air carrier of the Republic of Belarus. A significant number of experts come to this conclusion, commenting on the sanctions of the authorities of European countries.

The EU summit that took place may be crucial for the national airline. The ban of Belavia on crossing the airspace of the EU countries threatens to actually cut off the company not only from flights to Europe, but also to other countries, including Egypt and Turkey. 

Neighboring Ukraine also joined the sanctions against Belarus.

Refusal of European carriers to fly over the territory of Belarus, according to experts, can lead to serious losses for Belaeronavigatsia. The state-owned enterprise engaged in the air traffic services risks losing up to $ 70 million. This opinion was expressed by the head of Friendly Avia Support, Alexander Lanetsky.

In fact, all major air carriers have abandoned flights through Belarus.

Experts believe that such a step may lead to some increase in the cost of flights for the companies themselves. They will have to lengthen the route and flight time, spending additional fuel.

The ICAO meeting is to be held on May 27. What position the international civil aviation organization will take on the issue of sanctions against Belarus, will depend on it. Perhaps, the position of the ICAO will be more cautious than the decision of the European authorities.

The airline's securities have already fallen in price on the MICEX.

The loss of logistic connections and the loss of the market may lead Belavia to ruin, and damage the economy of Belarus in the amount of 5-7% of GDP. Before the incident with the landing of the RyanAir plane and the arrest of Roman Protasevich, the company operated about 60 daily flights to the EU countries, which is about a fifth of all liners crossing the space between Belarus and the European Union.