Airports warn PM Mishustin of possible bankruptcies

MOSCOW, Mar 24 (PRIME) – The Russian airports have warned Prime Minister Dmitry Mishustin about risks of possible bankruptcies because of the coronavirus, Yevgeny Chudnovsky, CEO of Airports of Regions, said in a letter to Mishustin published on the Telegram channel of the International Association of Airports late on Monday.

“Due to the coronavirus pandemic, the air transport industry has encountered serious restrictions, some of which led to an almost complete closure of international air traffic and to a catastrophic reduction of the domestic air transportation. The industry’s incomes will decrease soon, the risks of non-payments, a threat of forced large-scale layoffs, and airports will find themselves on the brink of bankruptcy due to the incapability to service debts,” the letter read.

Chudnovsky also suggested support measures, including state guarantees to the contractors of airlines to cover liabilities of 10 largest air carriers from April 1 through December 31, or full or partial airlines’ payments for airport services and fuel through state subsidies for the remaining three quarters of the year.

The airports also offer abolishment of rental payments for federal property, and a preferential rate of the profit tax in the amount of investment under concession agreements or under a public-private partnership deal depending on which an airport operates. The list of measures also includes compensation of losses by a fixed payment depending on the fall in the passenger traffic, financing of costs for keeping personnel, and a permit for airports that are partially owned by the state to pay no dividends for 2019–2020.

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