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Aeroflot plunged to an almost 2-year low Thursday after the US threatened sanctions that could include flight restrictions. The State Department announced new sanctions against Russia Wednesday to punish president Vladimir Putin’s govt for allegedly using a chemical weapon against former double agent Sergei Skripal in the UK earlier this year. A second round of sanctions in 3 months could include suspending Aeroflot’s flights to the US, according to the 1991 law under which they were imposed. “If the US goes ahead and bans Aeroflot flights to the country, the Russian state-run carrier may lose as much as 5% of its revenue,” said an analyst at Uralsib Capital. “US airlines may also suffer, as the Kremlin is likely to come up with a tit-for-tat response and restrict their flights in Russian skies.” <br/>

The Italian govt is considering involving national railway company Ferrovie dello Stato and public investment bank Cassa Depositi e Prestiti in plans to keep the bankrupt Alitalia in Italian hands, local media has reported. Squeezed by fast-growing LCCs, Alitalia filed for bankruptcy in May 2017, kicking off a long process of finding a suitable investor to take on the troubled carrier. Italy’s new transport and infrastructure minister Danilo Toninelli dismissed Ferrovie dello Stato’s board in July, saying his party wanted to ensure a break with the past. He also added to uncertainty over Alitalia’s future when he said in July that he wanted 51% of the airline to remain in Italian hands, alongside a strong investor, but later said he did not mean the airline should be nationalised. <br/>