Azerbaijan is not ready to continue the harmonization agreement with the EU Common Aviation Area (ECAA Agreement) and to sign this document.
The reason for this position is the potential negative consequences for the national carrier in the local market in competition with European airlines. This is stated in the annual report of the Civil Aviation Administration of Azerbaijan (CAAA) for 2013.
This issue was the subject of discussion of the first round of talks in Baku (24-25 January 2013) and the 38th session of the Assembly of ICAO (September 24 - October 4) in Montreal (Canada) with the EU delegation to the International Civil Aviation Organization.
The Azerbaijani side explained its position with unavailability of domestic airlines to operate in accordance with the requirements of this agreement. "The Azerbaijani government invests heavily in the development of the aviation infrastructure and therefore, at this stage signing the agreement could deliver local airlines at a disadvantage." The state-run CJSC Azerbaijan Airlines also opposes joining the agreement.
Note that the project Single European Sky, which creates a single EU airspace with countries not members of the united Europe, was launched in 2004. According to the idea of its initiators, it will benefit all users of airspace due to a more secure and efficient use of airspace and air traffic control inside and outside the EU. Air traffic control will stop obey the national offices within national borders, but instead will establish "functional airspace blocks", the boundaries of which will meet requirements of efficient use of airspace.
In CAAA they told Turan that currently 27 foreign airlines are permitted to use the airspace of Azerbaijan, including the commission of scheduled flights. Accession to the ECAA Agreement implies the elimination of licensing procedures.
AZAL today operates regular flights to Europe on 8 routes. The airline might fear reduction of the passenger flow in connection with the entry of new European carriers.
Georgia and Ukraine have signed this agreement. - 08B-
Economics
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Azerbaijan's Consumer Price Index (CPI) in December 2024 marked a year-on-year increase of 4.9%, with food and beverage inflation leading the surge, according to data from the State Statistics Committee. The overall CPI stood at 104.9%, driven by a 5.5% rise in food products, beverages, and tobacco, 2.4% in non-food products, and a sharp 6.3% hike in paid services provided to the population.
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In 2024, Azerbaijan produced 29.1 million tonnes of oil together with condensate, down from 30.2 million tonnes in 2023, according to preliminary information published by the country’s Ministry of Energy.
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Azerbaijan’s inflation rate in 2024 remained relatively stable, averaging 2.2% for the year, according to data from the State Statistics Committee. While this marks a period of subdued price growth compared to global trends, the numbers reveal nuanced dynamics across sectors and reflect both domestic policy measures and external influences.
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Azerbaijan’s economic growth is expected to continue in the coming years, although forecasts from ING Group and the United Nations (UN) present slightly differing views on the pace of recovery. ING Group, the largest banking institution in the Netherlands, predicts modest growth in Azerbaijan’s gross domestic product (GDP), while the UN offers a more optimistic outlook.
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