Bank Of Baku

Survey: Baku-Antalya flight monopolized by Turkish Company

Survey: Baku-Antalya flight monopolized by Turkish Company
# 29 April 2011 09:05 (UTC +04:00)
According to local tourism company, the prices increased by AZN 250 from AZN 310-330 to AZN 540-550.

AZAl also witnessed the increase of prices. SilkWay Airlines Company says the price of tickets for Baku-Antalya-Baku flight rose from AZN 320 to AZN 535. They noted that, the prices will remain like this during summer season.

Tourism companies think that, Turkey’s Summer Travel Company purchases the 130 seats in 160-170-seat plane beforehand and this caused the increase of prices. Turkish Company does not sell tickets to simple passengers. It sells them to the tourists as tourist package. AZAL sells the tickets for other seats. Price rise was observed in AZAL’s tickets.

Note that, this practice is used widely, in tourism sector. It means, any tourism company purchases the some of seats beforehand. Company must pay the money of purchased seats not depending on number of clients – this move is called as Solid block.

It is true, Summer Travel’s packets are sold not only by itself, but also by other companies – 5-9% of packet’s price is paid to those mediating companies as bonus. And it is lower compared to previous years. Chairman of Azerbaijan Entrepreneurship Confederation, chief of Baku Tur Company Faiz Mammadov says that bonus amount is low, that is why, such cooperation type is not interesting for anybody: “There are such tourism companies which are engaged in selling of tickets to Antalya only in summer. Consequently, they will suffer damage too. If it continues, 10-15 tourism companies engaged in sending tourists to abroad are expected to be closed this season”.

Moreover, another urgent issue worrying tourism companies is related to sharp price rise of AZAL’s tickets. Mammadov noted that the reasons of price rise to Antalya are known: “But we have no explanation in connection with price rise of plane tickets”. Officials of tourism companies think that as a result of such advance in price, serious problems occur in organization of tours. Only plane ticket costs AZN 535, that is why, the tour packet formed on this price is more expensive than the another one offered by Summer Travel. That is, it losses competitiveness. In other words, as a result of sharp price rise of AZAL’s prices, tourist tours in direction of Antalya have been monopolized by the mentioned company.

On the other side, other companies are given a chance to create charter routes for prevention of monopolizing of flights by one company. But AZAL has not done it.
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