ORDER OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN

of December 31, 2010 No. 1511

About approval of Rules of subsidizing of aviaroutes

According to the subitem 54) of article 13 of the Law of the Republic of Kazakhstan of July 15, 2010 "About use of airspace of the Republic of Kazakhstan and activities of aircraft" the Government of the Republic of Kazakhstan DECIDES:

1. Approve the enclosed Rules of subsidizing of aviaroutes.

2. Declare invalid the order of the Government of the Republic of Kazakhstan of December 28, 2007 No. 1344 "About approval of Rules of expenditure of the budget subsidies for aviaroutes" (SAPP of the Republic of Kazakhstan of the Republic of Kazakhstan, 2007, Art. No. 50 623).

3. This resolution becomes effective after ten calendar days from the date of the first official publication.

Approved by the Order of the Government of the Republic of Kazakhstan of December 31, 2010 No. 1511

Rules of subsidizing of aviaroutes

1. General provisions

1. These rules of subsidizing of aviaroutes (further - Rules) are developed according to the subitem 54) of article 13 of the Law of the Republic of Kazakhstan of July 15, 2010 "About use of airspace of the Republic of Kazakhstan and activities of aircraft" and determine procedure for subsidizing of aviaroutes.

2. The domestic regular transports along aviaroutes performed based on decisions of the Government of the Republic of Kazakhstan or the state body authorized by it and also the transportations performed based on decisions of local executive bodies of areas, the cities of republican value and the capital, which are not providing the income level necessary for effective functioning of aviaroute are subject to subsidizing at the expense of budgetary funds.

The international regular carriages along aviaroutes performed based on decisions of the Government of the Republic of Kazakhstan, which are not providing the income level necessary for effective functioning of aviaroute are subject to subsidizing at the expense of budgetary funds.

The difference between income gained from transportation of passengers, freights, mail and baggage and the amount of the operating expenses which are created in case of air transportation, within the annual amount of the allocated budget subsidies along each aviaroute is subject to subsidizing.

Operating expenses on certain flight are calculated according to the procedure, determined by authorized body in the sphere of civil aviation.

2. Procedure for subsidizing of aviaroutes

3. Selection of the aviaroutes offered to subsidizing from the republican budget is performed by the commission created by authorized body in the sphere of civil aviation (further - the commission of authorized body).

Selection of the aviaroutes offered to subsidizing from the local budget is performed by the commission created by local executive bodies of areas, the cities of republican value and the capital (further - the commission of local executive body).

4. The list of aviaroutes is created based on social and economic feasibility and drawn up by the legal decision of the commission of authorized or local executive body.

5. The list of the aviaroutes offered to subsidizing from the republican budget joins the aviaroutes determined by the decision of the Government of the Republic of Kazakhstan or the state body authorized by it, which are not providing income level by following criteria:

1) the aviaroutes connecting the capital, the cities of republican value to the regional centers and the large cities of areas;

2) the aviaroutes connecting the regional centers among themselves and interregional aviaroutes if the route has socially important character for development of the region;

3) the aviaroutes connecting the capital, the cities of republican value and the regional centers to objects of tourist activities and especially protected natural territories of republican value if the route has socially important character for development of the region;

4) other international aviaroutes determined by authorized body in the sphere of civil aviation.

The aviaroutes determined by the decision of the Government of the Republic of Kazakhstan or the state body authorized by it are determined based on appeals of local executive bodies.

The list of the aviaroutes offered to subsidizing from the local budget joins the aviaroutes determined by decisions of local executive bodies of areas, the cities of republican value and the capital which are not providing income level and providing communication with the remote settlements within one area.

6. Local executive bodies for inclusion of aviaroute in the list of the aviaroutes offered to subsidizing from the republican budget represent to the commission of authorized body necessary calculations with indication of the required size of subsidy along each aviaroute.

7. The list of the aviaroutes offered to subsidizing from the republican budget created by the commission of authorized body in the procedure established by the legislation joins in the budget request submitted to authorized body on budgetary planning when forming the republican budget for the corresponding financial year.

The list of the aviaroutes which are subject to subsidizing from the local budget created by the commission of local executive body in the procedure established by the legislation joins in the budget request submitted to local authorized body on budgetary planning when forming the local budget for the corresponding financial year.

8. The budget subsidies are provided within the amounts determined by the law on the republican budget or decisions of maslikhats on local budgets for the corresponding financial year.

For the purpose of rational use of the allocated money on subsidizing of aviaroutes (as agreed by the parties within the agreement or agreements of the budget subsidizing of regular aviaroutes), in cases of decrease or excess of the actual amount which is subject to subsidizing over the planned size of subsidies along aviaroutes, are allowed:

change of frequency of accomplishment of flights;

change of rate for the purpose of increase in passenger traffic and conclusion of route to commercial basis based on the appeal of local executive bodies;

redistribution of subsidies in the directions of aviaroutes within total amount for year in coordination with carriers.

8-1. In case of change of the administrative-territorial device of the Republic of Kazakhstan as a result of which the type of aviaroutes on their administrative-territorial sign changed obligations of local executive bodies on subsidizing of air transportation at the expense of budgetary funds remain behind these local executive bodies until the end of the current financial year.

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