Aeroflot to Be Stripped of Additional Source of Revenue
OREANDA-NEWS. August 12, 2009. Aeroflot is likely to be stripped of an additional source of revenue, as royalty payments made by foreign air carriers in 2009 will be cut in half to USD 149 mn of which the Russian flagship carrier will be able to spend only USD 84 mn, reported the press-centre of FINAM.
This year Aeroflot expects to derive USD 149.9 mn from foreign air companies as overflight fees or RUB 4.89 bn at the projected exchange rate, according to an agreement signed between Aeroflot and the Federal Agency for Air Transport on the distribution of these funds.
The existence of this document was confirmed by the federal agency’s official and a source close to Aeroflot. The agreement signed in early March 2009 by the then CEO of Aeroflot Valery Okulov and head of the Federal Agency for Air Transport Gennady Kurzenkov specifies a monthly payment schedule (from January until December).
After the 20% corporate profit tax is paid the amount will come to USD 119.9 mn of which USD 35.97 mn should be wired to the Federal Agency for Air Transport as “non-refundable assistance” from Aeroflot, and the document says that the amount of this aid was confirmed by the air carrier’s BoD. It turns out that the air carrier will be able to tap only USD 83.9 mn or RUB 2.73 bn based on the 2009 forecast for the ruble/dollar exchange rate.
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