Russia may impose restrictions or a ban on European airlines using trans-Siberian routes in retaliation for the new EU sanctions over Ukraine, reports Reuters quoting the Vedomosti. If imposed, the restrictions would weaken European airlines’ competitive advantage over Asian rivals due to longer flights and higher fuel costs. The constraints would greatly affect Lufthansa (OTCQX:DLAKY), British Airways and Air France (OTCQX:AFLYY), and could lead to potential losses of $1.3B for three months of restrictions.
Israel has withdrawn its ground forces from the Gaza Strip following its elimination of cross-border infiltration tunnels. An Egyptian-mediated 72-hour ceasefire kicked in at 5:00 a.m. GMT, and over the course of the truce, delegates are expected to join talks in Cairo to cement a longer-term deal. Egypt has positioned itself as a mediator in prior Gaza conflicts but, like Israel, its current administration views Hamas as a security threat.
AIG has agreed