Air India has suspended flights along its nonstop Delhi-to-Moscow route following insurance contract renewals at the start of April.
According to a report by The Indian Express, the airline’s insurance underwriters had put their foot down and expressed concerns regarding the perceived threat of war between Russia and Ukraine, adding that flights landing in Russia would not be covered by insurance.
Air India, like many large airlines, receives insurance coverage from international companies, including UK-based firms that were recently blocked by legislation from offering contracts linked to Russia. Such sanctions caused airlines around the world to suspend flights to Russia, with Air India having been one of the few remaining airlines to have direct flights to the country.
Russian airlines, meanwhile, have similarly suspended international flights due to being shut out of European and North American airspaces. Aeroflot, a Russian carrier that offered direct flights to Delhi, suspended its flights to India to prevent having its planes seized by lessors.
A report from Business Insider revealed that AerCap, an aircraft leasing agency, filed a $3.5 billion insurance claim over planes that remain grounded in Russia. As Caroline Wagstaff, chief executive at the London Market Group, pointed out to the Financial Times, such large claims are to be expected due to “ripple effects” caused by the conflict in Ukraine.
