“Fares on international routes are determined based on several factors. In general, fares on international routes are formed according to the exchange rate of the Swiss franc against the local currency and may vary depending on exchange rate differences,” Azer Farajov, head of the Passenger Transportation Department of “Azerbaijan Railways” CJSC, said in an interview with APA-Economics.
He noted that ticket prices for the Baku–Tbilisi–Baku route are also determined based on settlements with Georgia and the exchange rate of the Swiss franc against the manat: “In addition, each country through which the train passes on international routes applies its own coefficient to the tariff.
Likewise, every country along the international route applies its own tariff coefficient. In other words, the price is not calculated solely based on distance. The international nature of the route, technical maintenance, locomotive and wagon operations, and service expenses are also taken into account.
As with domestic routes, prices are also affected by weekends, public holidays, and seat selection.
Firstly, since the pandemic period, there has been a significant increase globally in passenger transportation tariffs for both air and rail transport. Between 2019 and 2025, international passenger ticket prices increased by an average of approximately 110%. This rise is mainly linked to higher energy prices, high inflation, supply chain disruptions, and increased costs for spare parts and technical maintenance.
For example, the price of diesel fuel increased from 0.60 manats to 1.10 manats, which means an 83% rise. Electricity tariffs for non-residential consumers increased from 0.09 manats to 0.125 manats, marking an increase of nearly 40%. The minimum monthly salary has risen from 180 manats in 2019 to 400 manats. Business trip expenses have also increased by up to 45%.
Secondly, the level of service has changed. Previously, simpler and older wagons were used on this route. Now, passengers are offered modern sleeper wagons manufactured by ‘Stadler’.
At the same time, since the technical operation and servicing of these wagons require a specialized approach, technical inspection and repair work are carried out under a contract signed between ADY and ‘Stadler Rail Group’. The increase in costs in this area is mainly related to the global inflation-driven rise in prices for spare parts and materials.
All these and other factors have caused the cost price of tickets to increase by more than two times compared to 2019.”
Azer Farajov also stated that, considering the international nature of transportation, the tariff component related to the Georgian side also affects the final ticket price: “This component has increased by approximately 180%. This has raised the foreign cost burden along the route.
Therefore, the formation of tariffs on the Baku–Tbilisi–Baku route is not related only to ADY’s internal expenses. The tariff components of both the Azerbaijani and Georgian sides, as well as international settlement mechanisms, are taken into account here.”
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