Minister of Industry and Infrastructure Development of Kazakhstan tells how he would help reduce airfares

Beibut Atamkulov, Minister of Industry and Infrastructure Development, Kazakhstan, told how the state intends to reduce the cost of air tickets, Kazinform reported.

“Now the cost of air tickets is mainly formed on the basis of a market and dynamic pricing mechanism (competition, demand, seasonality, holidays and weekends). The state is equidistant from direct regulation and only creates competitive conditions for airlines. Only through competition will we reduce the cost of air tickets,” Mr. Atamkulov said.

He emphasized that the state, in turn, should control and exercise due supervision of the market.

“Therefore, the ministry takes a number of measures to solve this problem. The first one. Since 2012, all restrictions on regular passenger flights by Kazakhstan airlines on domestic air routes have been lifted. On the three most popular air routes, flights are carried out by four air carriers with various tariff offers,” the Minister said.

According to him, this measure has affected airfares reduction.

“For example, if in 2012 the average cost of a ticket on the Nur-Sultan – Almaty air route was $ 85 in terms of the US dollar, then in 2019, tickets cost $ 60 on average. The second one. In May 2019, the first national low-cost airline named FlyArystan was launched, the ticket prices of which are twice lower than the ones of Air Astana. Currently, over 470 thousand tickets have already been sold, the cost of 60% of these air tickets is below KZT 10 thousand,” Mr. Atamkulov noted.

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