Russia is going to restrict overflights for EU airlines?

Russia may restrict or ban European airlines from flying over Siberia on busy Asian routes, a Russian newspaper reported, following Western sanctions which have grounded Russian carrier Dobrolet.

The Russian business daily Vedomosti quoted unnamed sources as saying the foreign and transport ministries were discussing possible action which might force EU airlines into long and costly detours and put them at a disadvantage to Asian rivals.

Shares in Russian carrier Aeroflot - which, according to Vedomosti, gets around USD$300 million a year in fees paid by foreign airlines flying over Siberia - dropped after the report.

The Transport Ministry and the civil aviation authority declined to comment on the possibility of responding to the European Union sanctions imposed due to the Ukraine crisis.

At the height of the Cold War, most Western airlines were barred from flying through Russian airspace to Asian cities, and instead had to operate via the Gulf or the US airport of Anchorage, Alaska on the polar route.

However, European carriers now fly over Siberia on their growing routes to countries such as China, Japan and South Korea, paying the fees which have been subject to a long dispute between Brussels and Moscow.

The newspaper quoted one source as saying a ban could cost carriers including Lufthansa, British Airways and Air France EUR€1 billion (USD$1.3 billion) over three months. Restrictions would lead to longer flights, higher fuel use and other additional costs.

However, state-controlled Aeroflot would also be hurt if it lost the fees.

Lufthansa said it operates about 180 flights a week through Siberian airspace but declined further comment, as did British Airways.

The EU widened its sanctions, imposed originally over Russia's annexation of Crimea in March, after last month's downing of a Malaysian airliner over territory in eastern Ukraine controlled by pro-Moscow rebels.

Russian low-cost airline Dobrolet, run by Aeroflot, suspended all flights last week after its plane lease agreement was cancelled because the EU extended sanctions on the carrier for flying to Crimea.

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Qantas re-routes jets away from Iraq

Qantas has stopped its flights using Iraqi airspace in the wake of the MH17 disaster.

A Qantas spokesman said the airline has closely monitored flight paths over conflict zones since Malaysia Airlines flight MH17 was shot down over Ukraine two weeks ago.

He said Qantas flights from London to Dubai travel over Iraq at an altitude of 38,000 feet and 41,000 feet, well above the minimum altitude for commercial flights over Iraq.

But the US Federal Aviation Administration had just increased the minimum altitude from 20,000 feet to 30,000 feet, prompting a review of Qantas' London-Dubai route.

"Qantas has closely monitored the issue of flight paths over conflict zones, particularly in light of the MH17 tragedy, with safety our first priority," he said.

"We have no new information that alters our safety assessment of flying over Iraq, especially given the altitudes we maintain over this region.

"However given the various restrictions imposed by different governments in the past 24 hours, including by the United States FAA, Qantas has temporarily rerouted its flights within the Middle East to avoid Iraqi airspace. This change will apply until further information becomes available."

The change took effect on Thursday night and will add up to 10 minutes to the seven-hour flight.

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