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Canada and Russia banned each other's commercial aircraft from flying through their sovereign air space yesterday in a simmering trade dispute over aviation rights.

After Russia refused to allow Air Canada flights to New Delhi to fly over Russian air space, Ottawa yanked Russia's overflight rights in Canada. Moscow responded by withdrawing Air Canada's right to fly over Russia on flights to Beijing.

"Russia has denied overflight rights for Air Canada's service to India. As a result, Canada has taken action restricting Russian overflights in Canadian air space," said Jennie Chen, a spokeswoman for the Department of Foreign Affairs.

A spokesman for the Russian embassy in Ottawa said Canada is also reducing the number of Aeroflot flights allowed to land in Toronto. Foreign Affairs said it has not yet put any restrictions on landing rights, a spokesman said.

As a result of Ottawa's actions, Aeroflot aircraft headed to Los Angeles, San Francisco and Seattle will have to spend several extra hours in the air. And it will take longer for Air Canada flights to get to Beijing.

Aeroflot operates five flights a week to the western United States. Its flights to New York and Washington will not be affected.

Air Canada spokeswoman Laura Cooke said Air Canada flights must spend an hour longer than anticipated to get to New Delhi.

Air Canada launched service to India last month. The extra hour costs the airline money because it requires more fuel. Also, Air Canada must fly with a lower payload -- fewer passengers or less cargo -- because of the extra fuel required.

Ms. Cooke said westbound flights to Beijing will take more time --eastbound flights do not pass through Russian airspace.

The Moscow Times reported that Prime Minister Jean Chrétien discussed the dispute recently with Russian President Vladimir Putin.

"The Canadian government declared some restrictive measures including a ban of overflights by Aeroflot on the Canadian territory on Aeroflot flights to the USA and some reduction of Aeroflot flights to Toronto," said Alexi Lisenkov of the Russian embassy in Ottawa.

"The Russian side considers that these actions are absolutely groundless, that they contradict the agreements achieved by our two leaders. We found ourselves forced to take some measures in response including restrictions of overflight of the Russian territory by Air Canada flights. But we think that this way of solving the problem is a dead end. There's no way out."

Ms. Chen said the existing bilateral air services agreement between Canada and Russia should allow Air Canada to fly over Russia.

"Russian authorities have not recognized these overflight rights under the agreement in spite of Canadian negotiating efforts. Negotiations are continuing to try to resolve this issue and resolve full service to the Canadian travelling public and business interests," Ms. Chen said.

Bill Clark, a Toronto lawyer specializing in international aviation law, said Ottawa's move to ban Aeroflot could have a significant impact on the Russian flag carrier.

"We've got a big piece of land and they use it for their benefit, lots of the time."

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