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Azerbaijan to create national low-cost airlines

Increasing of competition and number of flights, especially lowering the price of air tickets on short distances will form a favorable atmosphere for work of low-cost airlines.

This has been envisaged in the “Strategic Road Map for the development of specialized tourism industry in the Republic of Azerbaijan” approved by the presidential decree dated December 6, 2016, APA reports. 

 

According to the map, creation of national low-cost airlines will be considered to take maximum advantage of the atmosphere, as well as temporary stimulus measures proposed by the government for certain directions.

 

Moreover, creation of low-cost airlines in the country under the “Azerbaijan Airlines” CJSC or as a separate company (a legal entity with state-owned control package of shares), application of low fees on use of airport, as well as conducting reforms on sectors to make Azerbaijan more attractive for airlines and introduction of incentive mechanisms will be considered.

 

The Cape Town Treaty will be assessed as an integral part of this activity in order to decrease the movable property investment costs on the basis on standardization.

 

In order to ensure effective implementation of measures in this regard, the State Civil Aviation Administration will set the target to increase the number of airlines, hold meetings with international partners for this purpose, ensure the participation of private and national low-cost airlines at those meetings, specify the factors hindering the increase of the number of flights, and develop an action plan to overcome the difficulties with relevant state agencies and the Tourism Council.

 

The State Civil Aviation Administration will also stimulate opening of some areas with potential of bringing higher profits, whereas in need of marketing support and tax concessions for the starting period. The Administration will also assess the business climate and incentive structure on the sector and take necessary measures to improve them. 

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