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Russia to offer fleet renewal grants.

RUSSIA'S DEPUTY Minister of Transport, Valery Okulov, has reportedly pledged to award domestic and regional carriers up to $60.8 million in grants as part of an ongoing fleet renewal exercise. The announcement followed a meeting in Khabarovsk to discuss the development of air transport in the far east of the country; the region is expected to be one of the hardest-hit by the government's recent decision to ban Antonov An-24s from operating scheduled services. Furthermore, it is estimated that 50% of the region's Yakovlev Yak-40 fleet will be retired by 2015, creating a major shortfall in the 55-seat air transport sector. Mr Okulov commented: "The subsidies for fleet renewal of the regional airlines are stipulated in the budget for 2012, 2013 and 2014. The amount of subsidy available in 2012 is $60.78 million, and this is expected to increase annually to $76.8 million by 2014." He added that the subsidy would be used to pay the initial deposits on new aircraft (around 12-15% of the total cost), while the remaining balance would be co-financed between the local authorities and the carriers.
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Title Annotation:AIRLINE SECTION
Publication:Airports International
Date:Jan 1, 2012
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