Azerbaijan, Baku, April 4 / Trend E. Kosolapova/
Kazakh Air Astana airline will introduce fuel duty from April 5 to compensate increase of jet fuel price, Kazinform reported with reference to the company. This measure will result in average 16-percent increase in prices of domestic flights.
"Introducing fuel duty on domestic flights is a necessary measure. Air Astana's rate has been remaining unchanged since 2002, and we did everything possible to optimize our expenses... This step will partially offset the rise in prices for jet fuel, and allow remaining committed to the highest principles of safety, reliability and regularity of flights," the company said.
In 2011 Kazakhstan adopted the law on state regulation of production and turnover of certain types of oil, abolishing the existing state regulation of jet fuel prices. This law provoked jet fuel prices spike in the country.
"Jet fuel sale price rose by 200 percent in 2012 compared to 2010," the company said.
It is expected that Air Astana's expenses for fuel will rise by 61 percent in 2012 compared to 2011. The company's losses reached $10.9 million in January-February.
Air Astana is Kazakhstan's largest airline, which is the national carrier of the country. Air Astana is a joint venture of Kazakhstan's National Welfare Fund Samruk-Kazyna (51 percent) and Britain's BAE Systems company (49 percent).