Russia plans to implement an airfare levy on those travelling in an out of the country due to the nation’s ongoing struggle to source domestic replacements for Boeing and Airbus aircraft.
The Levy
Beginning in 2027, airfare levies will effect those travelling through Russia– these fares, placed under President Vladimir Putin’s orders, will take place to financially compensate for Russia’s repeatedly delayed attempts to restore its domestic passenger aircraft industry.
According documents from State Duma’s budget and tax committee report on the draft federal budget for 2027-2029, domestic flights would charge an extra (RUB) ₽500 (£4.64) while international travel adds ₽1,000 (£9.27). However, the levy is suspected to higher than the amounts specified in these documents, as a reported fare of ₽700 rubles (£6.44) on domestic flights and ₽1,800 (£16.57) on international flights was under heavy consideration.
The Industry and Trade Ministry committee assess that the airfare levy will aid in the development, leasing and operating costs of the 258 MC-21, Tu-214, SJ-100 and Il-114-300 aircrafts, set to be delivered under a government production expansion program.
For 2027, Russia’s government has invested ₽37.3 billion (£343.4 million) into its aviation industry development program, up 35% from this year- and spending is set to rise to ₽57.7 billion (£531.2 million) for 2028.
Russia’s Passenger Aircraft Development History
Russia’s national aviation industry has faced increasing setbacks since 2022 sanctions restricted the nation’s access to Western-produced aircraft components and spare parts.
In 2023, an aviation development plan called for an increase in domestic passenger aircraft production, expanding production by 46 times its original rate. Factories were expected to produce 40 aircraft in 2024, 80 in 2025 and 120 this year; the plan envisioned a number of 1,000 aircraft by 2030- those being the 270 MC-21s, 70 Il-114-300s and 115 Tu-214s. However, nearly four years into the endeavour, airlines are yet to receive any of the bespoke aircraft.
At a conference in May of this year, Sergei Chemezov, Chief Executive Officer of Rostec- state-owned defence and technology conglomerate, told Putin that production of the SSJ-100, Il-114 and MC-21 would begin only in 2027 after being pushed back from their original 2023/2024 target dates.
How do you think this will impact travel in and out of Russia? Let us know in the comments!
