Russia considers new air passenger levy to support domestic aircraft industry

Russian authorities are considering introducing a new levy on air passengers to help support the country’s domestic aviation industry, according to Kommersant.

Under the proposal, passengers could be charged up to 500 roubles ($6.2) on domestic flights and up to 1,000 roubles ($12.4) on international flights. However, no final decision has been made on either the amount of the levy or how it would be collected.

The funds would be used to offset the high purchase and operating costs of Russian-made aircraft. The first MS-21, SJ-100 and Tu-214 aircraft are considerably more expensive than comparable foreign models, while their maintenance costs could also be higher during the initial stages of operation.

Based on current passenger numbers, the levy could generate an estimated 68–84 billion roubles ($843 million–$1.04 billion) annually. Between 2027 and 2030, it could raise approximately 200–250 billion roubles ($2.48–$3.10 billion).

The funds are expected to be used, among other purposes, to reduce the leasing burden on airlines and cover part of their costs associated with operating Russian aircraft.

The government has already been supporting the purchase of domestically produced aircraft through Russia’s National Wealth Fund. However, aircraft prices have increased substantially in recent years.

According to Kommersant, the price of the MS-21 for Aeroflot has risen by around 72 per cent, while the SJ-100 has also increased by 72 per cent. The Tu-214 has nearly doubled in price.

Authorities expect the levy to become unnecessary after 2030 as mass production increases and aircraft costs decline.

Experts, however, have warned that the additional charge could push up airfares and potentially reduce demand for air travel.

By Sabina Mammadli