Well, not much is coming down the pipeline lately in terms of Gennadich and Knights of the Sky. They did say a couple months back that they would be stopping those glorious Thursday updates, so it's not unexpected - but I guess everyone wasn't expecting it to go on so long without a proper update!
Now to face the reality - these lack of updates can mean several different things. In a perfect world these lack of updates means that the team is buckling down for a release soon, and they don't have time to prepare updates. In a slightly less perfect world, it means they're in overhaul mode, but not for any release soon (i.e. a post-Christmas release). In both of these perfect worlds, they've secured a publisher but haven't officially announced it (note before that I said theoretically KOTS would be published, at least in Russia, by 1C).
But those are scenarios in a perfect world! Fans of WWI sims may remember sims that never were, such as the similarly-named Knights Over Europe, which slowly vanished off the face of the earth, until months later when someone finally broke silence and offered a somewhat detailed account of what was going on over at Aspect Simulations (RIP).
But that's in a pessimistic world! Surely the same is possible of this WWI sim by Gennadich, but it's less likely. What do I think is happening? Well, in terms of a publisher, it seems to me that they haven't secured one for a wider release. I think they'd be more forthcoming if they actually had landed a publisher. They are also redesigning their website, maybe for dressing it up for potential publishers. Or maybe it actually is 1C, and they don't want to announce it for some reason? Who knows.
I really think this will be released in some form or another eventually. This is a company that's released other titles previously. Also, they had until this point been updating their site with pictures every week! In addition to this, they have constantly been interacting with fans on their forum. This is undoubtedly the best communication of any WWI sim developer I can remember.
So at this point I'm content to keep waiting - let's hope something good will come of this!