Ulaanbaatar
Government to provide MNT 4.7 billion to MIAT Airlines
Politics
Ulaanbaatar /MONTSAME/. During its meeting on June 22, the Cabinet approved a resolution, titled ‘Some measures
to be taken in the air transportation sector’.
MIAT Mongolian
Airlines currently operates flights en route Frankfurt-Ulaanbaatar twice a
week. In connection with the increase in the passenger flow due to
the start of the tourist season, the frequency of the
flight on this route is planned to be increased to five times a
week between July and September. Therefore, the Cabinet has made
a decision to provide financing of MNT 4.7 billion from the government’s
reserve fund, according to Minister of Road and Transport L.Khaltar.
“MIAT Mongolian
Airlines purchased Boeing-767 aircraft, paying USD 4.5 million to the
Export-Import Bank of the United States, which could pose financial
difficulties to the company. In this regard, the government resolved to provide
financial support to the company”.
Although charter
flights were conducted during the pandemic, the aviation companies are still in
dire financial straits. During his meeting with representatives of tourism and
airlines, Prime Minister L.Oyun-Erdene emphasized the possibility of providing
loans. Therefore, as reflected in the resolution, it was also resolved to issue
a loan of MNT 145 billion within the government’s MNT 10 trillion comprehensive
plan for health protection and economic recovery.
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