Baku Metro subsidies will increase by 28%

In 2013, the government of Azerbaijan Baku Metro will provide a grant to cover losses at the level of 29.2 million manat. This is by  6.4 million, or 28% more than this year. The reasons for increased subsidies were not disclosed. 

In 2009-2011, the fare in Baku Metro has been increased from  five to  20 gepiks. Without revealing the structure,  the leadership of Metro argues that the cost of travel is about 50 gepiks, by  2.5 times more than the cost of travel in public transport. 

It is noteworthy that despite the annual decline in passenger flights, the government practically does not reduce state subsidies to the  CJSC "Azerbaijan Airlines" at a reduced price of tickets on the route Baku-Nakhchivan-Baku. Since 2007, passenger traffic on domestic routes reduced rapidly. In 2007, domestic airline benefited 680,000 passengers, in 2010 it dropped to 210,000 people;  the years 2011-2012 are not exception. Many passengers prefer to travel to the blockaded Nakhchivan Autonomous Republic by land transport, through Iran. However, AZAL will receive in 2013 a grant of 10 million manat. This is enough to cover the losses AZAL to carry 500,000 passengers of the route. In 2011, the leadership of AZAL left without answer a written request for the cost structure of flights to Nakhchivan. According to the Tariff Board, the fare on this route is 90 manat. Passengers pay for the ticket 50 manat. Half of nominal losses are covered by subsidies from the state budget, the remaining 20 manats at the expense of the airline.  08B