Gov’t support internal aviation

The government will stimulate separate sectors, including internal aviation.

The relevant amendments will be made to the Tax Code of Georgia and the Criminal Code of Georgia. The Ministry of Finance presented the draft laws at the government session.

"The package includes the stimulation of fields such as internal aviation. For this we will exempt internal aviation fuel from VAT and excise. This change aims at promoting tourism, since internal aviation is mainly subsidized sector and special stimulus is needed in this direction to maximize internal traffic," said Prime Minister Giorgi Kvirikashvili.

Such a step will likely be very welcomed, and supporting internal aviation can only be considered a step forward.

However, there are certain issues that must be taken into account.

Stimulating the internal aviation must not mean the support of those aviation companies that are in action in Georgia.

Newcomers must also be given chances that will make the field more competitive.

Herewith, prices must not be very high; internal flights in Georgia remain expensive.

In many cases, despite some benefits, local companies generally refrain from offering comparably low prices for internal and foreign flights.

Herewith, the relevant bodies and institutions must ensure genuine inspections of the companies and their fleet.

The government must also take steps for an effective labour inspection, for aviation and in other areas, as many in the aviation industry still work on very low salaries, sometimes without proper rest, which lowers their motivation and energy and consequently may create some safety threats.