In the past few days we have seen countries close their airspace to Russian airlines due to Putin's invasion of Ukraine. One company has just terminated an agreement with Aeroflot, and this will have more implications on Aeroflot's ability to operate than anything else we've seen up to this point.

Sabre terminates Aeroflot contract

Many airlines use the software technology company, Sabre, to power their reservations systems. The distribution agreement with Aeroflot is ending. This is a big deal.

The marketplace used by travel agencies, travel websites, and corporations around the world to shop, book, and service flight reservations will no longer include Aeroflot flight content. Russia's government-owned airline can no longer sell tickets because of this.

Sean Menke is the CEO of Sabre.

“Sabre has been monitoring the evolving situation in Ukraine with increasing concern. From the beginning, our primary focus has been the safety of our team members in the impacted region, as well as doing our part to support the much-needed relief efforts. We are taking a stand against this military conflict. We are complying, and will continue to comply, with sanctions imposed against Russia. In addition, today we announced that Sabre has terminated its distribution agreement with Aeroflot, removing its content from our GDS.”

Taking into account legal considerations and any counter measures that could be implemented in response, Sabe will evaluate whether additional actions are appropriate.

The Polish Red Cross will use the $1 million donated by Sabre to purchase food, hygiene products, and sleeping bags for those in need.

Aeroflot is going to have issues selling tickets

Well done, Sabre!

It isn't often that I think to myself, "way to go, big faceless for-profit corporation, you rock!"

The airspace bans we have seen so far have consequences for Russia, but they pale in comparison to what Sabre just announced. Most airlines rely on independent technology companies to sell flights, as well as perform other flight management functions.

This will have a worse impact on Aeroflot's ability to operate than just about anything else.

The Russian people aren't to blame for this, but Putin's regime is. Putin isn't going to be hurt by not being able to fly Aeroflot, and neither are the people surrounding him.

If Russians revolt, the most likely path to Putin losing power is likely. Placing as many sanctions against Russia as possible is the most likely path to take.

This move does a lot of damage to Aeroflot

Bottom line

The agreement with Aeroflot was terminated by the company. Aeroflot can no longer sell tickets through traditional means, and so many other things on the back-end are powered by the same company.

The airline will need it.

There is a tip to the hat.

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