Russia weighs passenger fee to subsidise domestically built aircraft

Russia is considering a new fee on air passengers to help pay for the leasing and operation of aircraft built inside the country. The transport ministry, the industry and trade ministry and the state corporation Rostec are weighing the instrument, according to sources familiar with the proposal cited by the newspaper Kommersant.

The size of the charge has not been settled. Most of the newspaper's sources put it at up to 500 rubles, roughly 5.50 euros, for domestic flights. The measure could raise as much as 2.8 billion euros.

The new russified types have been slow to arrive and are getting more expensive. The Ilyushin Il-114-300 is furthest along and received a restricted type certificate in June. The Tupolev Tu-214 is going only to government customers for now, with Red Wings due to take the first example for scheduled service in 2027. Deliveries of the Yakovlev SJ-100 and Yakovlev MS-21 to airlines are not expected before the second half of 2027.

Several factors explain the delays. After the 2022 sanctions, engines, avionics and many other systems had to be replaced with Russian-developed alternatives. There is also a shortage of qualified personnel. Money is the decisive issue, however, with production costs having risen sharply.

The MS-21 is far more expensive than planned. In 2023 the state leasing company GTLK was still calculating 4.3 to 4.6 billion rubles, around 50 million euros. Kommersant now estimates production costs at 8.9 to 11 billion rubles, or about 100 to 120 million euros.