About the development of a set of measures for support of civil aviation enterprises of the region during period of recovery from pandemic and its aftermath
On the basis of the results of the video conference held by the Interstate Council on Aviation and Use of Airspace on 8 July 2020 «Development of reasonable and realistic measures and mechanisms of possible support of civil aviation in connection with the substantial restrictions on persons travel adopted by the authorities of the countries», a set of measures for support of aviation enterprises of the region has been discussed and proposed. Letters proposing the implementation of these measures were sent to the Governments of all States parties to the Agreement on Civil Aviation and Use of Airspace.
As specific support measures, the following are suggested for consideration:
1. Within the framework of the organizations of CIS and EurAsEC take agreed decisions on the restoration of air traffic between the participating countries no later than 1 October 2020. This measure will allow airlines (airline companies, airports, ATC companies) to earn additional income and people to move between countries. If necessary, the Interstate Council on Aviation and Use of Airspace is ready to become a moderator of this work.
2. It would be desirable to:
- develop and adopt coordinated (unified) sanitary and epidemiological requirements and protection measures,
- agree before the summer season of 2021 on fixing minimum tariffs at the level of the respective periods of 2019, thus avoiding both dumping and related financial losses, as well as unjustified tariff overcharges with limited supply and demand.
3. Consider the possibility of providing financial resources in the form of direct, non-reimbursable subsidies to enterprises, including for the additional costs of sanitary and epidemiological protection measures to business capital. Under current and future conditions, even low-interest loans appear to put additional pressure on enterprises and can only transform current financial problems into future periods.
4. Grant subsequent deferral until April-May 2021 on any payments to the State by aviation enterprises (airlines, airports, ATC enterprises) and reduce their size. This applies to taxes and social contributions, payments for air navigation services, payments for aircraft if there is State funding for aircraft (financing of State banks).
5. Consider subsidizing/increasing air travel on socially significant routes and expanding the range of such routes, provided that prices remain at 2019 levels.
6. Avoid price dumping and subsequent airline losses, particularly during the winter period 2020/2021, consider at least in interstate (and possibly domestic) flights the possibility of setting of lower price boundaries at the same 2019 level.
7. Explore the possibility of introducing a temporary (until the summer season 2021) restriction on the expansion of airline fleets (aircraft replacement is allowed) and the opening of new operator certificates.
8. Consider the possibility of compensating from the budget of airlines for the maintenance of the necessary qualification of the «temporarily surplus» flight officers as a measure of flight safety maintenance, as well as the costs for storage and depreservation of excess aircraft.
9. Consider the possibility of fixing all regulated rates and charges for airport and air navigation services at 2019 levels by the end of 2021, at the same time, providing budget allocation mechanisms, if necessary, to airports and air navigation companies.
For its part, Interstate Council on Aviation and Use of Airspace will conduct follow-up videoconferences on an ongoing basis, monitor developments in civil aviation, discuss and propose possible follow-up support.