Government studying possible financial support for airline industry amid COVID-19Politics
Ulaanbaatar /MONTSAME/. At the cabinet meeting held on October 28, today, Minister of Road and Transport Development L.Khaltar delivered a presentation on the financial difficulties encountered in the national air transportation industry.
Concerning this, corresponding officials from government agencies and ministers were charged to study possibilities on bailout for national airlines conducting flights to international and domestic destinations - MIAT Mongolian Airlines state-owned enterprise, Hunnu Air and Aero Mongolia, and to provide funding required for relocating domestic airlines to the new international airport named after Chinggis Khaan and maintaining their normal operations.
Due to the suspension of international flights since February 2020, some 1,370 scheduled flights by the MIAT Mongolian Airlines had been cancelled, and the national airline have operated a total of 75 repatriation charter flights on different routes, as of September 30.
MIAT had planned 1,657 flight services in the first three quarters of 2020 to earn around 410 MNT billion. However, the number of flights performed by the company during this period was only 287, with MNT 130 billion in revenue.
In spite of some cost-saving regulations taken by the MIAT, such as postponement of non-essential expenditures and investments, wage cuts and employee adjustments, the company will find it difficult to ensure its ability to pay by the second quarter of 2021, if this situation continues, reports the Press Office of the Cabinet Secretariat.