AZAL losses reach 500 million manat?

Despite an increase in passenger carriages in air transport , airline losses in 1999 reached 500 million manat. Although, according to official figures, in 1996-1998 airlines worked quite profitable.

In the first half of this year, the losses in terms of passenger carriages exceeded 16 million manat. In Azerbaijan, three airlines are involved in passenger transportation. However, the share of the state JSC "Azerbaijan Airlines" account for over 99% of carriages. Permanent head of AZAL since 1996  is Jahangir Askerov.

According to the State Statistics Committee  (SSC) , the number of passengers using the services of local airlines (AZAL, "Turan Air" and "Silk Way Business Aviation") began to grow in 2009. At the end of 2012 , passenger carriages reached 1.6 million (by 560,000 people more than in 2009.) However, the airline suffered a significant loss; if losses of  airlines  on passenger carriages in 2009 amounted to 98.8 million manat in 2012 , the figure was 33.2 million manat. This revenue ticket was not a small sum: from international transport airlines get from one ticket on average 181.5 manat, domestic  carriages - 49 manat. Most of the passengers of the local companies make  international flights. For example, during the first half of this year, according to the SSC, from 744.600 passengers were flying on international flights. This is by 10.5% more than in January -June 2012. Information that  over the first half of the  year only 3.1 million passengers flight to the CIS countries seems doubtful, although it is known that AZAL  makes  daily flights only to Moscow.

According to statistics, in the first nine months of this year on the aircraft carried  1 280.6 thousand passengers, which is by  4.3 % more than in the same period last year.

Azerbaijan Airlines do not publish financial reports because the foreign rivals have been get used to it.  The CJSC "Azerbaijan Airlines" in compliance with the law should publish an annual financial report, accompanied by an auditor's report. Perhaps, this paper could clarify questionable activities of its loss-making activities.

For comparison, in 1998, passenger  carriages  totaled 833,000 people, the income of local airlines accounted for 40.3 million manat. However, their tax profit reached 26.7 million manat.

It should be emphasized that almost all aircraft ground service of aviation in Azerbaijan is carried by a private airline "Silk Way Holding". Experts believe that the real return on the Transport of "leaks " on account of the holding structure with non transparent owners. The holding includes 23 companies, more than half of whom work in the field of civil aviation. Local media report that the holding company  is owned by the family of President Ilham Aliyev , and  the holding is  informal controlled by the head of JSC "Azerbaijan Airlines", Jahangir Askerov . 

The Assistant of the Head of CJSC "Azerbaijan Airlines" Muharram Safarli denied that the company operates at a loss, calling it  "fiction." He refused to make other comments. --08B--