Airlines use dynamic pricing – Deputy Chairperson, Civil Aviation Committee, Ministry of Industry and Infrastructure Development, Kazakhstan

Aibek Alzhanov, Deputy Chairperson, Civil Aviation Committee, Ministry of Industry and Infrastructure Development, Kazakhstan, clarified some issues related to airfare pricing in Kazakhstan in his interview with PrimeMinister.kz.

According to him, new players appear in the civil aviation market of Kazakhstan, new flights are launched, competition appears, which leads to a decrease in the cost of air tickets. For example, the national low-cost airline named FlyArystan has launched some of its new flights at initially affordable prices. Just recently it became known that a flight is being launched from Nur Sultan to Pavlodar, where the air ticket price comes to KZT 999+.

“The main numbers remain with the airline. This is a trade secret, but you must understand that a ticket for KZT 1,000 is a promotional price that will not be available at all passenger seats. It will be about 30-40% of seats on the plane, prices for other passenger seats will be slightly different and higher,” Mr. Alzhanov said.

According to him, first of all, you need to understand that the market for air ticket prices is not regulated and it is quite dynamic. Airlines use dynamic pricing.

“The air carrier pays attention to the date of the flight, to the user’s history. Airlines use dynamic pricing, there is a mathematical model that takes into account all these indicators,” the Deputy Chairperson of the Civil Aviation Committee said.

He also said that after criticism regarding expensive prices for some flights, the Kazakh Ministry of Industry and Infrastructure Development formed a working group together with the airlines to address these issues, involving the Committee on Regulation of Natural Monopolies of the Kazakh Ministry of National Economy, which has the powers and competencies to internal pricing checks.

Source – http://lenta.inform.kz/

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