Page 108 - RusRPTNov22

9.1.3 Aviation sector news
The government will allocate RUB15bn to the new equipment for the aircraft producing facilities like manufacturers of the MC-21 jets, Prime Minister Mikhail Mishustin said on October 17. The first batch of the equipment will be bought in 2022, the rest in 2023–2025, he said. As a result, Russian facilities may start to produce at least 36 jets per year. The government will spend additional RUB2bn on support of the airports where air traffic was suspended driving support to a total of RUB7.5bn spent in 2022, Mishustin also said.
The government discusses further Rb50.6bn in airlines subsidies for November 2022 – March 2023, Interfax reported yesterday. If we assume that Aeroflot gets half of the subsidies, it may translate into roughly Rb25bn – a material amount. In theory, subsidies do not carry any explicit obligations. Hence, for Aeroflot shareholders, it does not cost much. However, it distorts the market. The company cannot direct these amounts to dividends.
Airfare prices had fallen back to pre-mobilisation levels two weeks after the mobilisation was announced. The proportion of returned emigrants is likely to be lower than in the spring The second wave of "military" emigration subsided in two weeks, Kommersant writes. Airfare prices have fallen to levels before the announcement of partial mobilisation on September 21 - and even lower. In the week ending October 5, demand for the main international destinations decreased by 1.5-2 times, ticket prices are much stronger. So, a ticket to Dubai from Moscow in the first days after mobilisation cost 300-500 thousand rubles, now when bought in a week - 56 thousand rubles. You can fly
108 RUSSIA Country Report November 2022 www.intellinews.com