Russia’s Commuter Subsidy Program Doubles in Growth in 1Q

Photo: startupist.com

Russian airlines carried 78,400 passengers in the first quarter through the commuter subsidy program, more than doubled from 29,800 passengers in the year-ago period. According to Russia’s Federal Air Transport Agency, Rosaviatsia, the number of operated flights grew 88.6% to 1,698 in 2016 from 900 in 1Q 2015.

Russian carriers have used RUB388.97 million ($5.8 million) of the subsidy program, up 34% year-over-year (YOY). Nineteen airlines took part in the program in the 1Q, including Angara, Aurora, YuVT-Aero, RusLine, Red Wings and Komiaviatrans. The flights are operated using SSJ100s, ATR-42s, Antonov An-148s, An-24/26/28s, Let L-410s and Bombardier CRJ 100/200s.

The whole subsidized network comprises 115 routes in 67 cities in eight federal districts; the airlines operated flights on 79 routes during this year’s first quarter.

The most popular route of the program is Novosibirsk-Talakan, which connects Novosibirsk, one of Russia’s biggest cities, with the oil-and-gas field airport in Yakutia (Sakha). The flights are operated by Angara Airline, which carried 3,538 passengers in 1Q. The route is followed by Yekaterinburg-Novy Urengoy and Krasnoyarsk-Tomsk.

The government intends to spend RUB3.83 billion on the program in 2016.

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Within the framework of the Volga region commuter subsidy program, airlines carried 23,300 passengers in 1Q 2016, up 18.9% year-over-year. Three carriers are taking part in a program—Avia Management Group, working under Dexter brand, YuVT-Aero and Orenburg Airport airline. All together they performed 2,410 flights.

Currently, RUB98.8 million out of a RUB450 million budget has already been spent on the program.

Source: atwonline.com

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