Home / Mid-East / Syria / ‘Dismal’ Losses Continue for Russia’s Airlines

‘Dismal’ Losses Continue for Russia’s Airlines

Russian airlines have announced handling waste of 24 billion rubles ($376 million) for a initial entertain of 2016, a Kommersant journal reported Tuesday.

Vladimir Tasun, boss of a Russian Association of Air Transport Carriers, told a journal that “figures seemed dismal” and that a industry’s bad opening was a outcome of a series of disastrous factors carried over from final year.

Russia’s airlines suffered several setbacks in 2015 due to a worsening domestic climate.

Commercial flights to Russian holiday hotspot Egypt were cancelled after a bombing of moody A321 over a Sinai dried in Nov final year while all blurb flights between Ukraine and Russia were also suspended.

Charter flights to Russian traveller favorite Turkey have also been cancelled for a final 8 months, after a Russian jet was shot down by Turkish army on a limit with Syria.

Russia’s Transport Ministry announced this week that licence flights to Turkey are set to resume shortly following an central reparation from Turkish President Recep Erdogan for a downed Russian plane.

The plunging value of a ruble has also forced many Russian holidaymakers to stay during home, with oil prices still struggling to benefit poignant ground. The 2015 closure of Russia’s largest private airline Transaero also contributed to a sector’s altogether decline.

Losses on domestic routes totalled 25 billion rubles ($391 million) in a initial entertain of 2016, while increase on general routes reaching only 1.5 billion rubles ($23 million). The total uncover a estimable burst from a initial entertain of 2015, when waste totalled 16 billion rubles ($250 million).

“In a stream economy, even a minimal [ticket] cost arise would only wear a situation,”
Tasun said.

“What is indispensable is a some-more vital response from a attention and continued state support. It’s apparent that we won’t be means to move behind direct only by lifting prices and reopening licence flights to Turkey.”

Experts have warned that airliners need to rise concurrent policies on lifting sheet prices and shortening over-abundance appetite supply and beyond costs, Kommersant reported. The Ministry of Transport submitted proposals final month to revoke VAT on domestic newcomer flights until a finish of 2017, though a skeleton are nonetheless to be approved.

Article source: http://www.themoscowtimes.com/article/574900.html