on the Eve of Russia has restricted air traffic with the EU countries, Switzerland and Norway, earlier, these measures imposed against China, South Korea, Iran. Airlines are cutting flights on other international routes, as countries introduce a ban on entry. But it is bad.
Aeroflot stops flights to Prague, Oslo, Copenhagen and Vienna
the majority of the costs of the air carriers are tied to the exchange rate – maintenance, salaries of pilots. And the fuel market international. So this year the market may face a “perfect storm,” says chief expert at the Institute for transport Economics and transport policy HSE Fyodor Borisov.
In previous years, the industry increased gross growth double-digit pace. But to earn the airlines managed mainly on international routes. Inland was unprofitable, and the increase of internal traffic to a significant extent, was achieved due to very cheap tickets, said Boris.
“With a very high degree of probability in the third quarter of this year we will see the bankruptcy of Russian airlines. Unfortunately, there are European precedents,” said “the Russian newspaper” the head of analytical service of Agency “AviaPort” Oleg Panteleev. If the restrictions on flights will affect popular places overseas holidays, someone will have to stop flying in the second quarter, he said.
the Russian airline will be forced to deploy the aircraft on domestic lines, because the Park should not be delayed, experts say. Airlines vying to offer passengers flights domesticri country on favorable terms. But the big demand there.
S7 Airlines suspends flights to Austria, Bulgaria, Czech Republic and Cyprus”Victory” stops flights to Larnaca, Riga and Eindhoven
Hope support. The government has announced the allocation from the reserve Fund of 300 billion rubles. According to experts, including to support the airline industry. In addition, the announced postponement of the payment of taxes for airlines and the tourism industry.
Previously the Bank of Russia announced a package of regulatory relief measures for banks, primarily to help the airlines and travel industry with minimal losses to survive the epidemic of the coronavirus. Banks will be easier to go for restructuring of loans transport and tourist companies affected by coronavirus infection. Restructuring or delinquency on the debt made by these companies do not require banks to additional regulatory capital.
After a hard period, the growth in aviation will continue, experts believe. Although pent-up demand will recover soon.