Russia’s Transport Ministry hopes to retain prices of air tickets in 2019
The Russian Ministry of Transport hopes to keep the prices of air tickets in 2019 at the current level, Minister of Transport Evgeny Dietrich told reporters on Saturday, Trend reports referring to TASS.
"We really hope that we will be able to keep the prices, although it will be very difficult given the fact that the price of fuel is not falling, and so far airlines have not received compensation for the growth of jet fuel prices. You know that a number of airlines has difficulties with debt, so it’s important for us to maintain control over it," he said.
The Ministry, together with UTair and its largest creditors, is looking for options to support the carrier after more than half of the lenders have refused to postpone payment, Dietrich said.
"More than half of the lenders refused to postpone the payment of the debts of the airline (for high season - TASS). We are considering, together with UTair, possible options for providing support so that the company can continue its smooth operation. Now jointly with the CEO and with the largest creditors, we start discussions about resolving this situation," he said.
The airline has two syndicated loans from 11 banks for a total of 38.6 bln rubles ($581.85 mln). Repayment of the loan should begin in 2020, until then the carrier must pay interest.