Russian airlines ask authorities to reconsider subsidy program rates

Russian airlines have requested the Ministry of Transport to reconsider the rates for subsidised routes in the Far East, Kaliningrad and Crimea programs. According to a letter by the Russian Association of Air Transport Operators (AEVT), these subsidy programs remain in force only during the high summer season, “compelling the airlines to sell profitable seats at low rates to perform the social programs. At the same time, the airports are increasing their rates for the carriers annually, explaining the decision with the inflation and other negatives. But the rates for subsidised carriage remains the same during the whole program,” AEVT said. “As a result the carriers bear losses.” There are several govt-subsidised programs in Russia. There are also several commuter subsidy programs, but they are carried out during the whole year. <br/>
ATW
http://atwonline.com/government-affairs/russian-airlines-ask-authorities-reconsider-subsidy-program-rates
4/27/16