From today, there are maximum tariffs on passenger transport by air transport in the country. The essence of the decision of the Tariff Council on 2 December this year is that the state JSC Azerbaijan Airlines may establish in its sole discretion fare on domestic flights at even a lower level.
Rates in one direction from Baku to Nakhchivan (70 AZN), Ganja (56 AZN), Zagatala (52 AZN), Lankaran (41 manat) and from Ganja to Nakhchivan (39 AZN) are maintained at the same level ( in December 2007).
It is noteworthy that the decision does not talk about the air route Baku -Gabala- Baku, in force since 1 June 2012. When this flight opened, the airline AZAL set ticket price in one direction at 48 manat. Flights in this direction were interrupted due to low passenger traffic. Since August this year, flights resumed again and the ticket price was set at AZN 30 one way.
We note that the government subsidizes airline flights Azerbaijan Airlines from Baku to Nakhchivan and back. With the cost of the ticket 70 AZN the government pays subsidies of AZN 20 of this amount for passengers who are citizens of Azerbaijan and stateless persons. Every year, the airline receives subsidies on this route about 10 million to 11 million manat. The airline did not answer the question of the other domestic flights are profitable. - 08B-
Economics
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Azerbaijan’s economy, which is heavily dependent on oil revenues, faces a stark warning in the 2021 report by Carbon Tracker titled “Beyond the Oil States: The Urgent Need to Reduce Dependence on Oil in the Context of the Energy Transition.” The report ranks Azerbaijan among the most vulnerable oil-dependent countries, placing it in the "5th group" — a category reserved for nations expected to experience a decline in oil and gas revenues exceeding 40% over the next decade. This group includes Angola, Bahrain, Timor-Leste, Equatorial Guinea, Oman, and South Sudan, highlighting shared economic risks for these states.
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Azerbaijan's non-oil and gas exports rose 3.5% year-on-year to $2.8 billion during the first ten months of 2024, the Center for Analysis of Economic Reforms and Communication (CAERC) reported in its November "Export Review."
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Azerbaijan Railways CJSC (ADY) will modify the schedules for commuter and domestic trains in line with the Cabinet of Ministers' decision to adjust work and rest days in November, aiming to ensure safe and comfortable travel during the COP29 event, the company announced.
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In Azerbaijan, the government has increasingly relied on tax exemptions for imported goods as a tool to stabilize domestic market prices. The exemption from the 18% VAT on wheat imports, extended this year, exemplifies this approach. New measures have also been introduced, including tax relief on imports of electric vehicle chargers, while exemptions for high-cost medications are currently under discussion. Notably, defense imports continue to be free from taxes and customs duties.
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