MOSCOW, October 27 (RIA Novosti) - The Russian Finance Ministry plans to issue $1.1 billion in loans to airlines to buy fuel, a deputy prime minister said on Monday.

"The Finance Ministry said it was ready to issue 30 billion rubles ($1.1 billion) in loans [to air carriers for fuel purchases]," Sergei Ivanov said.

He also said the Russian government would draw up proposals on granting airlines a deferment of up to six months on the payment of customs duties on certain items.

"Within two weeks, proposals will be made on granting deferments of up to six months on the payment of customs duties and fees on foreign made aircraft, as well as training simulators and aircraft engines imported to Russia," Ivanov said.

The deputy premier also said proposals had been made to insure air passengers against a failure by air carriers to fulfill their obligations, including flight delays.

The moves are aimed at stabilizing the national air travel market.

Russia could also register a new airline, tentatively called Russian Airlines, by November 11, 2008. The new air carrier is being established on the basis of the failed AiRUnion by the Russian Technology state-run corporation, the Moscow city government, and the administration of Eastern Siberia's Krasnoyarsk Territory.

Problems with fuel bills caused flight delays across the country in August and September 2008 and forced a number of airlines into bankruptcy.