AZAL Reduced Losses

In 2014, passenger air transport has brought losses of 17 million manat, twice less than in the previous year.

The State Statistics Committee told Turan the revenues of the airlines in the past year amounted to 298.6 million manat, which is 13.8% more than in 2013. The costs of the companies for passenger transportation totaled 314.6 million manat, increasing by 5.7%.

Azerbaijan’s passenger traffic is arranged by two local airlines: state-run JSC Azerbaijan Airlines and LLC Silk Way Business Aviation (part of the group of companies Silk Way Holding).

In 2014, the airlines transported around 1.8 million passengers (+ 7.6%). The share of Silk Way Business Aviation is 0.4% of the passenger traffic. The company performs commercial flights only, and therefore, unlike AZAL operates at a profit. However, both companies did not publish financial statements. In compliance with article 5.3 of the statute, AZAL is obliged to publish, in accordance with legislation, the annual financial report no later than 30 April of the following financial year.

AZAL receives annually from the state budget at least 10 million manat as subsidies for losses on the route Baku-Nakhchivan-Baku. The ticket price in one direction is defined at the level of 70 manat, of which 20 manat is financed from the state budget.

Note that at the international airports of Azerbaijan there are several foreign airlines, including Turkish Airlines, Aeroflot, Sibir, Fly Dubai, Ukraine International Airlines, Qatar Airways, Air Astana, British Airways, Lufthansa, Belavia and others. --08B-