Air Astana raising domestic flights prices 04 апреля 2012, 14:29
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Air Astana aircraft. Photo courtesy of the company's press-office
Air Astana Tengrinews.kz reports, citing the press-office of the carrier.
According to the company, domestic flights tickets will go up 16% starting from April 5, 2012. It is said that a new law “On state regulation of production and turnover of certain types of oil products,” was adopted in 2011. This law cancelled state regulation of aviation kerosine prices. This leaded to a spike in jet fuel prices. Kerosene selling price jumped by 200% in 2012 compared to the 2010 prices. This surge made Kazakhstan jet fuel prices one of the most highest in the world.
Air Astana believes that its jet fuel expenses will increase 61% compared to 2011 and will make up 30% of the air company’s total expenses. The surge in prices has already resulted in losses in amount of $10.9 million for the company in January-February 2012.
“Introduction of a fuel levy on domestic flights is a coercive measure for Air Astana