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State Subsidies to Airlines for Specific Routes

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Pursuant to the Decree of the Government of the Russian Federation dated March 2, 2018 No. 215 "On Approval of the Rules for Granting Subsidies from the Federal Budget to Air Transport Companies in Order to Ensure the Availability of Air Transportation for the Population and on Cancelling Some Acts of the Government of the Russian Federation Regulating Air Traffic", subsidies can be provided to air transport companies for flights to the Far East region of Russia, to the Republic of Crimea (Simferopol), to Kaliningrad, and along some regional routes, as provided for by the Decree of the Government of the Russian Federation dated December 25, 2013 No. 1242 "On Subsidies from Three Transport Companies of the Federal Budget for Air Transport of Passengers in the Territory of the Russian Federation and Creation a Regional Route in the Russian Federation".

The right to subsidies is granted to an air transport company in case of:

a) signing an agreement on granting a subsidy with the Federal Air Transport Agency in accordance with the standard form approved by the Ministry of Finance of the Russian Federation;

b) registration of special fares on routes and conditions for their use in accordance with Article 16 of these Regulations, within 7 days from the date of signing the agreement, publishing them in the prescribed manner, and opening sales of air transportation at special fares; and

c) air transportation of passengers at a special fare by the airline's own flights or a permission to carry out such transportation in accordance with the corporate commercial code by air transport companies that are subsidiaries of the air transport company with which they have signed the agreement.