Kazakh government discusses air ticket prices in Kazakhstan

At a meeting of the Government of Kazakhstan, issues of the development of civil aviation and measures to further reduce the price of airline tickets were considered, the press service of the government said.

The Minister of Industry and Infrastructure Development B. Atamkulov, Managing Director for Transport and Logistics of Samruk-Kazyna JSC K. Alpysbaev, Energy Minister K. Bozumbayev, President of Air Astana JSC P. Foster reported on the situation in the industry.

The volume of air transportation of passengers is growing in Kazakhstan – for Jan-Aug 2019, 5.6 million passengers were transported in civil aviation, which is by 1.8% more than last year.

In order to reduce airfare, a low-cost airline, the FlyArystan low-cost airline, has been launched since May 2019. It sold over 450 thousand tickets, almost 60% of which were sold at minimum tariffs – up to KZT 10 thousand (USD 1 = KZT 389). In the near future new messages will be opened from Nur-Sultan to Pavlodar, Semey and Shymkent at a ticket price of KZT 5,999+. In Pavlodar, option tariffs are sold at a price of KZT 999+. By the end of 2020, the low-cost airline will fly to most regional centers with the opening of international links to Moscow.

According to Mr. Alpysbaev, Managing Director for Transport and Logistics of Samruk-Kazyna JSC, the average FlyArystan tariff for 1 km is lower by four times than the tariffs of European low-cost airlines.

This year, thanks to the modernization of Kazakhstani refineries, the volume of aviation fuel production increased to 694 thousand tons, or 1.8 times, compared with the production in 2018. This allows you to fully cover the needs of the domestic market at the expense of domestic refineries.

“Providing the population with high-quality, safe and affordable air services is one of the important tasks assigned to us by the President and The Leader of the Nation Nursultan Nazarbayev,” Mr. Mamin said.

The Prime Minister instructed to continue work on opening flights to Shanghai and Singapore in 2020, to complete accreditation procedures for domestic airlines to open flights to New York, to complete the reconstruction of the runways of Kostanay and Balkhash airports by the end of this year, and to complete the construction of an airport in Turkestan on time and the terminal in Shymkent, to accelerate the development and adoption of a program for the development of small aircraft and airfields in the regions.

The Prime Minister set the task to intensify work on providing ‘open skies’ for domestic air carriers at domestic airports, which, due to the attraction of new foreign airlines, the expansion of the air route network, and increased competition, is intended to influence the reduction in airfare. Given that more than 20% of the ticket price is occupied by the share of expenses on aviation fuel, the ministries of the national economy, energy, industry and infrastructure development have been instructed to work out issues of pricing for jet fuel.

The Prime Minister instructed the Samruk-Kazyna Fund to ensure an increase in the fleet of airlines owned by the state holding and expansion of the air route network in 2020.

“As you can see, the study of measures to reduce the price of air tickets gives results. This work needs to be continued for all domestic airlines,” Mr. Mamin summarized.

Source – http://ca-news.org/

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