AEVT: Russian carriers losing EUR5m per day on special charters daily, proposes support measures

27 March, 2020

Russia's Association of Air Transport Operators (AEVT) estimated Russian carriers are losing RUB500 million (EUR5.8 million) daily on the operation of special charters for the return of citizens, as outbound services operate with no passengers (Interfax/ato.ru, 26-Mar-2020). RUB2.5 million (EUR29,176) to RUB4.5 million (EUR52,517) are lost per service, depending on aircraft deployed, and an average 200 charters are operated daily. AEVT recommended Russia's Government take measures to support carriers, including the following:

  • Introduction of a 0% value added tax rate on all domestic services;
  • Compensation of losses incurred due to the growth in fuel price in 2018;
  • Twofold increase of financing for existing regional air service subsidy programme;
  • Introduction of a moratorium on increases in airport and air navigation charges in 2020;
  • Improvement of compensation mechanism for excise on fuel;
  • Eligibility for lower insurance payments.