UPDATE 3: Putin offers to subsidize local flights with 100 bln rbl
(Rewrites story)
MOSCOW, Mar 31 (PRIME) – Russia should subsidize local flights by 100 billion rubles, President Vladimir Putin he said at a meeting on the air industry development on Thursday.
"In addition to the existing measures of state support, including cheaper fares to the Far East and other regions, I am asking the government to launch a large-scale program which we have just discussed, including compensation some of the domestic flight fares," Putin said.
The money on cancelled flights must be returned to the clients of airlines soon, Putin added.
The president also ordered to reduce the airlines’ financial burden on leasing and letters of credit. He asked the government to compensate spending of the airports in the central and southern Russia, where flights are restricted. Putin ordered to set firm obligations for the suppliers of aircraft and aircraft components, including the terms of delivery.
The president said that Russian airlines would be unable to cooperate with the former partners like before, but Russia remains an open country and needs to support the airlines and affordability of flights.
"This is important both for the Russian airlines, including the private firms so that they could develop as a dynamic, profitable business, and for the passengers, so that they can buy affordable tickets," he said.
He also said that the airline traffic must grow in 2022, and at least 100 million people must be carried on the year. The share of locally-manufactured aircraft in Russian airlines must increase dramatically in the next 10 years, Putin said.
"In the timeframe of the next decade, the share of local aircraft in the fleet of the local airlines must rise dramatically," Putin said.
Technical maintenance and repairs must meet the strictest requirements, Putin said.
Putin also said that the airline industry development strategy must change. "Concerning the long-term solutions, the strategy of airline industry development must be adjusted to rely on our own means and taking into account new conditions which holds opportunities for the Russian aircraft builders, engineering bureaus, suppliers of materials, equipment and components," he said.
Putin ordered the government to approve a new development strategy until 2030 by June 1.
(84.0851 rubles – U.S. $1)
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