Services at Baku airport to be improved at last

Published: 5/25/2000

It seems that the exodus of foreign airlines is finally having an impact on AZAL, the Azerbaijan air company responsible for what has been described by some foreign operators as one of the most expensive airports in the world with a 'modest level of service' — Baku Airport. Sabir Ilyasov of AZAL has reported that the Azerbaijan Cabinet is expected to agree on 1st June 2000 to the removal one of the major irritations to foreign airlines operating at Baku, VAT for airline service, following the VAT exemption on fuel begun on the 1st April. He is also reported as saying that this decision by the government reflected the acceptance of AZAL's proposals to improve service at Baku Airport. The public version of the proposals is, however, less than enlightening, but does give the impression that improvement may be a watchword at AZAL these days. The proposals are: · improvement of AZAL works with airlines · improvement of service quality in the airport · improvement of activity of other departments · effective investment attractions for further development of the airport According to Ilyasov, Djanger Aserkov, General Director of AZAL, has met and discussed with the airlines using and those that have left the airport, the problems they were and are experiencing. Emirates and KLM have agreed to the restoration of transit flights. The bulk of traffic from these carriers will however, come through what is described as an alliance, under which AZAL uses its Boeing 757, which the airline is reported to be negotiating the purchase of along with four Boeing 737s. The aircraft will carry passengers from Baku to Dubai and Amsterdam, with connections to ongoing destinations in the respective airline's network. At the airport AZAL intends to improve service by duty free shops and restaurants and cafes in the terminals. Although the concessions may be operated by Azerbaijani companies it appears AZAL will favour foreign companies to ensure a high quality of service. For transit passengers, visas will be issued at the airport and the AZAL plan promises improved customs service. AZAL's long-standing dispute with Transaero over airport debts prior to stopping using the airport also appears to be nearing conclusion with the signing of a memorandum of cooperation between Djanger Askerov and Alexander Pleshakov, Chairman of Transaero. The new agreement calls for the development of a jointly serviced route between Moscow and Baku, with the resumption of Transaero flights to the city from the 15th July 2000 using a Boeing 737, abandoned in 1999 due to the high cost of using the airport and the difficulty of making cash prepayments, according to Transaero. By mid-June, both companies plan to sign an agreement relating to the offering of fare deals and will also look at development elsewhere according to Transaero. On the subject of Transaero's debt to AZAL, which according to AZAL represents 50% of the airports outstanding debt, the two sides agreed that the Azerbaijan sales of the Transaero ticket would be offset in part against the reported debt of $570,000 and the debt's maturity would be extended by 18 months. The issue of Transaero servicing AZAL's aircraft in Moscow as part of the repayment process is yet to be agreed, but according Transaero, at least they are talking about it. The concept of offsetting the debt against AZAL's $3.5m ATC debt to Russia was not mentioned by either party.

Article ID: 1812