The Ministry of Transport will reduce government support to airlines after record volumes in 2022. This was written by the newspaper “Kommersant”, with reference to the message of the head of the Ministry of Transport, Vitaly Savelyev.
As the newspaper wrote, last year the Council of Ministers paid airlines about 100 billion rubles to transport passengers on domestic routes. So far, the subsidy has been extended from November 2022 to March 2023, with the allocation of 25.3 billion rubles. Before that, broadcast sources in the Ministry of Transport talked about the increase of this amount many times, but now they do not trust it.
Savelyev explained that support was waning as Russian airlines gradually purchased aircraft through leasing, noting that the agency plans to “reduce the volume of subsidies requested in proportion to the number of aircraft purchased.”
Regarding the dynamics of passenger traffic, the Ministry of Transport expects an increase from 95 million to 101 million people, and this figure is called an underestimate for reinsurance. But industry sources say the plan isn’t very viable.
In the first half of January, the newspaper Vedomosti, referring to the closed statistics of the Federal Air Transport Agency (Rosaviatsia), WroteAirlines from Russia carried 95.1 million passengers in 2022.
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.