Under a pilot project, launched in Yakutia in early 2021, to cut airport fees and to implement other incentives for passengers traveling from Ust-May to Yakutsk, the air fares dropped by 60%. However, the program could continue only if the loss of income is subsidized, Airports of the North’s Deputy Director General Andrei Medvedev told reporters.

In Yakutia, only 15% of the population live in districts, where year-round transport is available, and more than 90% of the territory may be accessed during certain seasons only. For most settlements the civil aviation is the only year-round transport, which serves more than 80% of the regional passenger flow.

"Jointly with the Polar Airlines we have implemented this year a project from the airport in Ust-May (a town some 420 km from Yakutsk and 200 km from the Northern hemisphere’s pole of cold; population - about 2,500 - TASS)," the company’s representative said. "We have chosen it as an airport which currently does not serve regular flights. Our offer was to set a minimum fare, comparable with ground transport’s fees."

The company unites 28 airports and three runways in the region, he added.

Under the program, Airports of the North has cut airport fees. The carrier also has offered lower costs. "We have dropped passenger fares by three times. At about six flights we had only 40-44% seats were taken. The flights were unprofitable," Medvedev said. "We would like to see further joint work between the air company and the [regional] government in additional financing, subsidies and compensations for the loss of income under the program."

According to him, Yakutia presently offers a program to compensate for 50% of cargo transportation if a company works with Airports of the North. The incentive is available for companies making at least 15 flights a month. This program is mostly of demand among companies, which transport food products to Northern villages, he said.