Monopoly of AZAL is contrary to the interests of consumers
The state airline Azerbaijan Airlines served more than 230,000 passengers in the first two months of 2015, which was 3% more than in the same period in 2014. In addition, for the transport of these passengers the airline had to fly 16.9% more airspace - over 402 million km.
Independent observers have noted that AZAL would carry more passengers if it had a more flexible tariff regime for international lines: using the monopoly position, it applies high tariffs on many fronts, in which it has no competitors. AZAL prevents entry into the local market of several foreign airlines that provide cheap economy packets convenient for tourists, students and others. The Civil Aviation Administration and the State Service for Antimonopoly Policy and Consumer Rights Protection do not respond to the actions of the Azerbaijan Airlines.
Since the second quarter of 2014 the airline has not provided statistical data on its financial performance to the state bodies. Therefore, it is unknown whether it is cost-effective. In 2014, local airlines made another record in the number of passengers – 1,790,400 (+ 7.6%). The share of AZAL accounted for 99.9% of the passengers.
The other party to the domestic civil aviation is Silk Way Business Aviation. In the past year, the company Turan Air "disappeared from the radar." Both companies belong to the group of companies Silk Way Holding. -----08B.
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