Subsidising of air transportation market in the Russian Federation

Air transportation, especially passenger transportation, in remote regions of the Russian Federation (hereinafter referred to as RF, Russia) is necessary to maintain regional connectivity and development. Due to the low economic efficiency of such transportation, the state provides targeted subsidies to airlines operating them. The subject of the study is the impact of airline subsidies on the development of the aviation industry. The purpose of the work is to identify the effectiveness of subsidizing airlines of the RF. Regulatory framework and legal bases of subsidies as well as federal aviation regulations in term of subsidizing airlines are explored. The materials are: open airline reporting, Federal State Statistics Service, open federal budget data. The following research was made by method of systematic analysis of airline operations results for the selected period, in particular, the dynamic or passenger traffic on domestic airlines and dynamics of financial support. The dynamics of usage state support by airlines was shown in the article. The patterns of distribution of the state budget between airlines according to subsidy programs are revealed. The amount of the subsidy was calculated using the example of the airline public joint stock company Siberia. Conclusions on the effectiveness of subsidizing civil aviation in the RF are formulated. The conclusions are formed based on the calculation of the total amount of subsidies, according to the legislative acts in the industry. The necessity of making adjustments to the subsidy technology for further support of the domestic air transportation market of Russia has been determined.

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