The Ministry of Industry and Infrastructure Development of Kazakhstan to undertake measures to reduce cost of air tickets in Kazakhstan

In his addressed message, the President of Kazakhstan Kassym-Zhomart Tokayev noted the high cost of air tickets in the country. The Ministry of Industry and Infrastructure Development of Kazakhstan is developing a series of measures, as well as an action plan to achieve its goals, Kazinform reported with reference to the Ministry.

The cost of an air ticket consists of the following indicators. A significant part of the price is the cost of aviation fuel, as this is about 32%, also the significant costs include the operation of aircraft, payments for aircraft rental and much more.

As regards aviation fuel, after completing all three refineries in Kazakhstan, our country was able to remove the import dependence of kerosene from the outside. This immediately affected the reduction in the cost of fuel, down to US $ 95. Further, Kazakhstan also plans to continue to look for ways to reduce prices, including reducing VAT for foreign air carriers.

Often, the Civil Aviation Committee receives questions about the high cost of air tickets for domestic flights, citing flights within Europe as an example. However, there are a number of factors that significantly distinguish the domestic market of Kazakhstan from the EU. In particular, this is market density, the number of airline players, the number of low-cost airlines, which is much higher in Europe than in our country, which contributes to healthy competition and lower airfare.

But, it is worth noting that Kazakhstan has vast territories and distances between cities, and a lower population density than in Europe. Therefore, when analyzing similar air routes by mileage, the following conclusion can be made. For example, on the Nur-Sultan – Almaty air route, the air ticket price comes to KZT 22,000+ (USD 1 = KZT 388). A similar air route in Europe, let’s say Paris – Rome has the air ticket cost higher by twice when counting in US Dollars. Of course, the EU has many short air routes, not exceeding 30-40 minutes in flight, which accordingly affects the air ticket price.

Despite this, in many respects, air travel in Kazakhstan is very competitive in price in comparison with other countries, in particular with the countries of Europe.

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