Air traffic over Ukraine shutting down as Russia prepares to invade
Western insurance companies are refusing to insure airlines flying over the territory of Ukraine, practically closing the sky over the country.
The Ukrainian news outlet Strana.ua reports, citing sources in the insurance market, that on Sunday the largest British insurance companies, which reinsure other insurers, sent out a notice that within 48 hours insurance coverage for flights going to and out of Ukraine will not be provided.
"Not a single plane will fly to or out of Ukraine starting from about the middle of the day on Monday," the source said.
The same information was confirmed by the owners of private jets. Insurance coverage for their aircraft will be revoked if they are in Ukraine, and therefore the aircraft should be withdrawn from Ukraine to the European zone.
“Most likely, starting Monday, 4pm Kyiv time, the air traffic over Ukraine will come to a halt,” writes the deputy of the Verkhovna Rada of Ukraine from the European Solidarity faction.
It is from this time (14.00 London time) that there will be no insurance coverage for civil aircraft that are in the Ukrainian airspace, Goncharenko claims. According to him, the owners of the leased aircraft are already prohibited from flying into the Ukrainian airspace.
Ukrainian insurance companies have indeed received a notification from the reinsurance broker Lloyd’s (UK) that any war related risks will not be covered, Anatoly Ivantsiv, director of the EXPO Insurance Company, confirmed to Interfax. This applies to both third-party liability and CASCO insurance. The Dutch airline KLM announced that it is suspending all its flights to Ukraine, and more than 30 countries recommended their citizens to leave the country and began evacuation of embassy employees. Because of this, insurance market became "nervous", says the head of the Ukrainian Association of Insurance Business, Vyacheslav Chernyakhovsky.
"Foreign reinsurers can leave it up to individual insurers to provide coverage, but they are unlikely to take on such responsibility. And airlines are unlikely to risk passengers and planes," he said.
"We will see literally an empty sky," says Cherkhnyakhovsky.
Data of the FlightRadar service already reflects fears of airlines who still remember July 2014, when a Malaysian Airlines Boeing was shot down from the Russian Buk missile system over the Donbas. There are currently very few flights over Ukraine, and only limited flights to or from Kyiv.
Some airlines are already diverting their planes. On Sunday, a SkyUp passenger liner flying from Madeira to Kyiv had to land in Chisinau, Moldova, after the owner – an Irish citizen- "categorically refused" to his plane (UR-SQO) to enter Ukrainian airspace, the airline said. Other foreign airlines, including Swiss and Ryanair, are still selling flights from Kyiv.
Lease providers demand that Ukrainian airlines quickly bring their aircraft to the territory of the European Union, said SkyUp Director General Dmitry Seroukhov. According to him, such a decision is associated with increased risks of the outbreak of hostilities.
Strana.ua reports, citing it sources in the insurance market, that following the British insurers, other largest international insures will announce the withdrawal of coverage on Monday.
Most of the aircraft are not owned directly by Ukrainian or foreign airlines, but are leased, reminds the head of the consulting agency Friendly Avia Support Alexander Lanetsky.
"The lease provider requires insurance in the amount of the cost of the aircraft plus 10% ($10-$100 million) to cover possible risks. In addition, according to the international law, the airline must have civil liability insureance. For the European market the cost of such insurance is $ 550 million per year. Without the latter, it is simply impossible to allow the planes to fly. The airline has no right to fly if it does not have it," he explains.
Lufthansa - the largest German airline is considering suspending its flights to and from Ukraine, the company told RIA Novosti. The decision has not yet been made but the situation is being closely monitored, Lufthansa added.
The Ukrainian Ministry of Infrastructure stated that there had been no government decision to close the airspace.
"Some carriers have difficulties associated with fluctuations in insurance markets. For its part, the government plans to provide additional financial guarantees to support the aviation market," the ministry added.
The Administration of Ukrainian President Volodymyr Zelensky said that the European Aviation Safety Agency did not give recommendations on restricting flights in the airspace of Ukraine.