Aviation website Aviator reports Russia denied overflying rights to the Icelandic carriers. Negotiations were underway in secret for the past year, but ended without success.
Requests for rights to fly over Russia are part of an effort by WOW and Icelandair to expand into Asia. Both want to use the Reykjavik (KEF) hub as a gateway for North American and European travelers flying to China, Japan and Seoul.
Negotiations broke down when the Russians requested as much as $100 per passenger for rights to overfly. Neither Russia nor China signed the International Civil Aviation Organization agreement of 1944, which means they, unlike most other countries, can pick and choose the airlines they grant overflying rights to. And they can charge royalties to do so.
Low-cost carriers, like WOW air, have slim margins to keep fares low. Adding the per-passenger fee would hurt business.
Norwegian has had similar problems, and has not reached an agreement with Russia despite several years of negotiations.
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