Buta Airways to Abandon Flights Operated by Foreign Low-budget Airlines from Baku

The report on the establishment of the Azerbaijani low-budget airline Buta Airways has given rise to discussions about the goals and objectives of the feasibility of the new company and AZAL future policies.

Note that the decision to create Buta Airways was adopted at a meeting of the Board of CJSC Azerbaijan Airlines (AZAL). The airline will be 100 per cent subsidiary of AZAL.

Responding to Turan’s request on the need to create a new airline in the presence of low-cost flights under the brand AZALJET, they told in AZAL that while AZALJET is a low-budget brand, Buta Airways will be a separate airline with its staff of employees, fleet and tariff policy. The budget of Buta Airways will be formed from the proceeds of sold tickets, luggage and additional services in air transport.

"This practice can be observed in many of the major airlines. For example, Anadolu Jet is a subsidiary of Turkish Airlines. Emirates Airlines and Fly Dubai have a common founder, and the Russian low-cost airline Pobeda is a 100% subsidiary of Aeroflot, the AZAL press service said.

It should be noted that since May 2016 under the brand AZALJET flights to 13 destinations have been carried out. The expert Natig Jafarli said that on flights under the brand AZALJET relative cheapness of the ticket is leveled by high baggage prices.

"As a result, prices for regular flights AZAL and AZALJET are not much different," he said.

At the same time, in the opinion of Jafarli, the creation of Buta Airways is intended to prevent the wide presence of foreign low-cost airlines.

"And if so, there will be competition and, accordingly, a significant drop in prices," the economist said.

Regarding the assumptions of economists, AZAL said the number of foreign low-cost airlines flying to Azerbaijan increased, and today their number has reached five.

"As Buta Airways will only have seven Embraer aircraft, at the initial stage the new airline is not going to fly in the directions, in which foreign low-cost airways fly," the AZAL press service said.   -----71D

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