Russia’s Federal Air Transport Agency of Russia (Rosaviatsiya) sees “no risk” that Russian airlines will go bankrupt due to restrictions in the sector because of Western sanctions, according to agency head Alexander Neradko.
“All the airlines are continuing to operate, and no one is expressing intentions to cease their activities. We monitor the situation. Everyone is working in a rather stable manner at this point. We see no risk of bankruptcy,” Neradko was quoted as saying by Interfax during the International Forum and Transport Week event, which took place on November 16, 2022, in Russia.
Neradko also said that Russian airlines will continue to receive state support through the upcoming winter season of 2022.
In October 2022, the country’s Ministry of Transport announced it was considering allocating around $842.8 million (RUB50.6 billion) to local air carriers in a bid to support the industry during the winter.
“The Ministry of Transport is working to allocate at least 50.6 billion to extend the support for the period from November 2022 to March 2023,” Dmitry Stepanko, acting head of the Department of State Policy in the Field of Civil Aviation, confirmed at the time.
In April 2022, the First Deputy Minister of Economic Development Ilya Torosov announced that in 2022, the government will gradually allocate a total of $3.75 billion (RUB311 billion) to support local airlines and airports as they continue to face international sanctions and operational restrictions amid Russia’s invasion of Ukraine.
The government has already allocated around $238 million of state aid to the country’s airlines to cover refunds for passengers whose flights were canceled due to international sanctions placed on the country following Russia’s invasion of Ukraine.