Aviation Fuel Subsidy Disciplines for priority routes were approved in Kazakhstan

Created on 17.09.2019 10:09

The Government of the Republic of Kazakhstan, by judgment of September 10, 2019, approved the Aviation Fuel Subsidy Disciplines for priority international air routes, according to Zakon.kz.

As indicated, all priority international air routes are subject to subsidization, undertaken by decisions of the Government of the Republic of Kazakhstan, which do not provide the income, needed for an effective functioning of the air route.

Aviation fuel costs are subject to subsidization, if there is a general negative difference between the income, received from the passenger transportation, cargo, postal service and baggage, and the amount of operating expenses, emerging during air transportation on new priority international air routes for one year, within the annual amount of allocated budget subsidies for each air route, not exceeding 10% of the aviation fuel expenses.

Priority international air routes, proposed for subsidies from the republican budget, in accordance with legal procedure, are integrated into budget application by authorized agency in the field of civil aviation, submitted to the authorized agency for budget planning when formulating the republican budget for the relevant financial year.

In order to receive budget subsidies between the administrator of the relevant budget program and the airline, having a valid certificate for a subsidized air route, a contract for aviation fuel budget subsidizing is concluded for priority international air routes.

Budget subsidies are paid monthly in quantities of allocated funds, according to the financing plan of the approved budget program.

Following the results of the fiscal year, the airline and the authorized agency in the field of civil aviation, are checking charge back reconciliation with the compilation of reconciliation acts of the work performed.

Airlines, not fulfilled the contract conditions during the air route operation, as well as in case of certificate’s withdrawal for an air route, in accordance with the Rules competition for subsidized air routes and issuing certificates for subsidized air routes, subsidies are not paid.

The decree comes into force on January 1, 2020.

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