The expert explained that a moratorium on bankruptcy will not help air carriers.

The expert explained that a moratorium on bankruptcy will not help air carriers.

Extension of the moratorium on bankruptcy for domestic airlines will not restore the work of the industry, but only give a delay to creditors, told "Octagon" lawyer of law firm Tax Compliance Andrey Solomyany.

Earlier, the Russian Association of Air Transport Operators (AEVT) asked the Ministry of Transport to increase the moratorium on bankruptcy, which expires in September 2020, for another six months against the background of the negative impact of the coronavirus pandemic on the country's economy. According to representatives of the organization, the level of air travel has not fully recovered.

Solomyany is convinced that for a positive effect on the economy today needs direct subsidies to the population. They will increase business activity and finally remove restrictive measures. Otherwise, the extension of the moratorium on bankruptcy will not lead to anything.

- The demand from business is relevant, as both the Government and leading experts confirm that our economy is still negatively affected by the pandemic. Business, which has been most affected (tourism, organization of public events, services), has not yet recovered, and no one will make specific forecasts in this area now. In summer there should have been a period of economic recovery for these areas, but many companies were subject to restrictions associated with the spread of coronavirus. Accordingly, the opportunity for profit and debt repayment by the business was missed, - explained the expert.

The interlocutor reminded that the Government planned to tie up bankruptcy restrictions with the restoration period, as well as the provision of various deferments and benefits, but these measures proved to be insufficient.

- Many companies have never recovered from the crisis: even those organizations that were not in the risk zone initially, but are associated with the most affected businesses, are now going bankrupt," he said.

Also AEVT asked to zero the VAT rate for domestic shipments by the end of 2024, but the Ministry of Finance did not support the proposal. Operating losses of domestic airlines may exceed 350 billion rubles by the end of the year.

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