Russian Controlled Airlines Fail in TDO Appeals


Two appeals related to Denial Orders affecting Russian and Turkish Airlines have been denied, one because the TDO had been reversed, and one because the complainant was not named.

Pegas Touristik and Southwind Airlines had filed appeals based on the repetitional damage created by Temporary Denial Orders related to Nordwind Airlines, a Moscow-based holiday package carrier, which remains subject to sanctions.

Pegas Touristik is a Moscow-based tour operator which purchased 100% of Nordwind Airlines in 2008.   Southwind Airlines was formed in April 2022 in Antalya Turkey by Pegas Touristik in response to US Sanctions on Nordwind. Despite the distinction, some MRO providers have been reluctant to maintain Southwind's fleet.

OOO Pegas Touristik

"as of June 27, 2023, Pegas was no longer a related person under § 766.23 to the Nordwind TDO, and therefore an appeal under § 766.23(c) is no longer available to Pegas. The ALJ concludes that he “cannot rule on these issues because there is no TDO currently in effect naming Pegas as a related person, thus, [he] cannot affirm, modify, or vacate as part of this appeal,” RD at 5, and I agree."

Southwind Airlines

Southwind concedes that BIS did not name Southwind Airlines as a related person subject to the terms of the TDO but alleges that the language in the TDO was sufficiently detailed to identify Southwind as the “Turkish airline” that “entered into charter agreements” with Pegas in support of its efforts to evade U.S. export controls on Russia.

According to Southwind, this language has had the same effect on Southwind as if it had. actually been named as a related person. Southwind states that the interpretation of this language by a key business partner, Pratt & Whitney, led Pratt & Whitney to cease support of engines aboard aircraft leased by Southwind, jeopardizing its business operations.



No comments on this item Please log in to comment by clicking here