Economist: Annual Income of Subway from Each Passenger 52 Gapik

Baku / 07/31/18 / Turan: The head of the press service of Baku Subway says that transportation of one passenger costs them 47 gapik, but in fact, according to our calculations, the average annual income of the subway from each passenger is 52 gapik.

This was reported on the page in the social network Facebook by the head of the Center for Economic Research Gubad Ibadoglu.

Justifying his calculations, the economist noted that the annual passenger flow in the subway on average is 201 million 221 thousand 400 people. At the old prices (20 gapik), the subway earned 40 million 244 thousand 280 manat, and at new prices (30 gapik) it will earn 60 million 366 thousand 420 manat.

"This means that if there is no change in the statistics of passenger transportation in the new fiscal year (August 2018-2019), it will earn an additional 20 million 122 thousand 180 manat. On the website of the Ministry of Finance it is stated that from the state budget of 2018, 45 million manat was subsidized to compensate for the loss and financial recovery of the Baku Subway, and state capital investments of 44 million manat are provided for the purchase of new cars and escalators, which in comparison with 2017 is 22.5 million manat or 29.4% more."

The economist pointed out that it earns tens of millions of manat from advertising programs, video clips and rental of monitors annually. In addition, the subway also has revenues from renting places for pharmacies located in the underground passes.

"Thus, the expected income of the Baku Subway this year is more than 150 million manat."

Ibadoglu suggested the leadership of the subway promulgate the cost structure for the transportation of one passenger.

Note that by the decision of the Tariff Council, the fare for public transport from August 1 increased from 20 gapik to 30 gapik. -71D-