13:10 - 14.11.2022

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November 14, Fineko/abc.az. The Accounts Chamber conducted an audit of the financial & economic activity of Azerbaijan Airlines CJSC in 2019-2021.

ABC.AZ reports with reference to the Chamber that as a result of the audit, it was found that the relevant revenues from foreign scheduled flights are obtained mainly through the mediation of the same commercial partners, provided that they occupy a dominant position; it was also found that some commission fees do not contribute to the formation of prices in a more competitive environment and the assessment of the potential to increase overall profitability under the conditions of application of tariffs above similar standards, and for airport services for cargo carriers' aircraft-preferential tariffs.

Also, the opportunities available in international practice for studying and applying successful examples of public-private partnership of third-party legal entities that have granted exclusive rights free of charge, under conditions of direct or indirect affiliation to a joint-stock company of income from the provision of services of various contents on the territory of the airport to AZAL customers, have not been used, the potential of additional income has not been realized.

In air transportation, the percentage of seat usage on flights is significantly lower than the average for long-haul destinations with higher spending capacity; in addition, low intervals in airport utilization coefficients did not contribute to the formation of favorable conditions for significant optimization of air ticket prices, negatively affecting the growth of income from both air transportation and other core activities in exchange for the burden fixed costs.

Proposals were put forward to eliminate shortcomings.