Russia’s Transport Ministry proposes fees in case of airline bankruptcy or emergency cancellations, meaning high ticket prices to come

Kommersant reports that the Russian Ministry of Transport is again considering the idea of an additional fee for passengers when booking tickets to create a “reserve fund to support passengers” in case airlines go bankrupt.

In June, the Ministry of Transport informed airlines that they were working on Rostec’s initiative to create a “national system of mutual settlements in air transport” through a single operator: JSC Aviagarant.

As pointed out by representatives of the airlines, Kommersant writes, the settlement system already exists under the management of the Transport Clearing House and there is already a fee of 185 rubles (about two dollars).

Now, according to Kommersant’s sources, the conversation is about introducing an additional fee when processing payment to create a reservation, guaranteeing refunds for passengers. The new fee will be at least 150-200 rubles (just under to just over two dollars) per passenger, said one airline, while a different source said the fee could be up to 300 rubles (around $3.30) per passenger.

One source said the fee would “inevitably lead to higher ticket prices” and a reduction in passenger traffic, which would eventually affect not only the business of airlines but also the Russian aviation industry.