The Government of the Russian Federation has expanded subsidies to airline companies.

The Prime Minister of the Russian Federation Dmitry Medvedev has signed a decree amending the air transportation subsidization that applies not only to direct flights, but also to flights with intermediate stops. In addition, the limit on the amount of passenger seats in the aircraft, which fulfills the subsidized transportation to the Crimea is lifted.

During the performance of the program of the direct flights subsidization and the organization of a regional route network emerged that airline companies need refueling landings in transportation though the subsidized routes. According to the adopted regulation the limit on the subsidizing of non-stop flights is lifted. This will provide the maximum enplaned traffic of subsidized flight.

The budget statement for 2015-2017 provides subsidies for regional transportation and development of the regional route network in 2015 to the extent of 3.58 bln rubles.

The Government’s assistance to the Russian air carriers came at a most seasonable time: the industry leaders are experiencing predicaments nowadays, as they have serious financial liabilities.

At year - end 2013 the leading airline companies of Russia had on their books 229 bln rubles of short-term obligations and 66 bln rubles of long-term obligations that is several times greater than their accumulated profit for the year-end. The amount of obligations of the companies “Transaero", "UTair" and "Yamal" exceeded its annual revenue.

The situation of the current year encourages no special optimism: mass bankruptcy of the tour operators, the stagnation of international flights that are more profitable than connecting flights, the worsening of geopolitical situation around Ukraine. All these things will increase additional problems to the air carriers. The amending of the situation can be achieved by increasing of the ticket prices; however, this measure can scare away potential customers and even worsen the rates of companies.