May 21, 2020

Russian government allocated $316.1 mln to support domestic air carriers in connection COVID-related losses

The Russian government has allocated 23.4 billion rubles ($316.1 mln) to support Russian airlines in connection with the spread of the novel coronavirus disease (COVID-19), the government said in a statement. This reported by Sputnik.

Earlier, Russian President Vladimir Putin gave instructions to support air carriers.

"Domestic airlines will receive 23.4 bln rubles in compensation for losses associated with the spread of the new coronavirus infection. Such a resolution was approved by the government", the statement said.

The subsidy can be spent on salaries for aviation personnel (at least 60 percent of the total subsidy), leasing payments (no more than 30 percent of the total), aircraft parking fees (no more than 10 percent of the total), and on operating activities and property maintenance.

"As explained by the Transport Ministry, in order to receive a subsidy, the airline must submit a statement to Rosaviatsiya (Federal Air Transport Agency) with the necessary package of documents. The final decision is made within 20 working days after the receipt of the application. During the development of the resolution, active consultations were held with market participants", the statement reads.

Amid the spread of the new coronavirus infection, air transportation has found itself among the most affected sectors of the economy. Subsidies allocated by the state will help airlines survive the period of restrictions associated with the difficult epidemiological situation and will help maintain the human resources potential of civil aviation.

Source