Page 111 - RusRPTNov20

9.1.3​ Aviation sector news
The Russian Association of Air Transport Operators has sent a letter to the government asking for an additional R50 bln in subsidies ​for the airline industry, according to a Vedomosti report published today. The article indicates that the government does not currently plan to allocate additional Covid-related subsidies to airlines and noted that the previous R23 bln tranche had not yet been distributed in full. With most international destinations still closed off and the low season approaching, it is no surprise that airlines are asking for help again. In fact, the y-o-y decline in traffic at Russian airports steepened over the first 18 days of October relative to the September level, according to data from Russia's International Airport Association. The Russian government just participated in the SPO of Aeroflot and allocated R50 bln to the company in the form of an equity injection. We therefore do not expect further support to be allocated to the company in the near future, while it would be quite strange to see other airlines supported via subsidies when Aeroflot just received an equity injection. We thus see the news as neutral for the stock at this stage.
In September the passenger turnover for Russian airlines continued to recover within the domestic market, while international travel remained subdued and only saw a moderate growth in flyers​. Passengers turnover in September in Russia was 9mn, down 33% year on year. In the largest airports, domestic traffic was up 8% y/y, while international was still down 80% y/y, VTB
111 ​RUSSIA Country Report​ November 2020 www.intellinews.com