Page 99 - RusRPTJun20

• Considering similar restrictions, the European Union decided not to put them into force.
The Russian airports will receive RUB195.4 ($2.73) as compensation in April–June for each passenger they have lost ​due to the coronavirus pandemic as compared with the second quarter of 2019, Kommersant reported on May 19.
The money will be distributed in proportion to contraction of passenger traffic like a subsidy of RUB365 per lost passenger was distributed among the airlines. Kommersant said that compensations to the large regional airports will amount to dozens of millions of, while the Moscow airports would receive hundreds of millions of.
For instance, the airport of Crimea’s Simferopol lost 89.5% of its passenger traffic in April, or about 254,200 people and will receive about RUB50mn in compensation for the month, while Moscow’s Vnukovo airport should receive RUB320–330mn, the business daily reported.
The government plans to allocate RUB10.1bn of subsidies to the airports for April–June. Taking into account the rate of RUB195.4 per passenger, the money would cover a contraction of about 92% of the passenger traffic in the period as compared with April–June 2019. If the government runs out of money, it will reduce the subsidies to the airports proportionally.
The Transport Ministry has not yet decided on compensations for July–September, but it does not rule out subsidies for the period, Kommersant reported.
Russian government to provide $300mn in direct support to aviation, $1.9bn in indirect support.
The Russian airline industry is finally getting its first package of state support: the RUB23bn ($311mn) in direct subsidies previously announced by President Vladimir Putin has been approved by the government as of May 14.
As strategically important enterprises, all major Russian airlines can apply for subsidised loans (6% is compensated by the government) with a 50% government guarantee.
Analysts estimate that Russian airlines are burning around RUB20bn per month (on the assumption of the lease principal being restructured), which translates into annual guarantee coverage of RUB115bn ($1.6bn) for the whole industry. So, the total theoretical government support might amount to RUB140bn ($1.9bn), VTB Capital (VTBC) said in a note.
“While it might at first glance seem that the Russian support is less generous than the multi-billion packages provided to US and European airlines, an apples-to-apples comparison shows that the devil is in the details,” VTBC said.
“In the US, airlines get $18bn of direct subsidies and $32bn of government loans. However, the size of the industry and cash burn per RPK are 5x higher than in Russia, which makes the US support package (normalised for these parameters) comparable with the Russian one,” VTBC calculates.
99​ RUSSIA Country Report​ June 2020 ​ ​www.intellinews.com