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Air Astana Airline has incurred losses of $11 million, Bnews.kz reports. “In 2012 the Company’s kerosene expenses are set to grow by 60%. Before April 2012 in Kazakhstan there was no fuel charge for domestic flights. It only applied to international flights. Starting from April 5 the Airline raised its domestic flights tariff by 16%. The Company’s losses incurred due to growing prices for kerosene will have to be included into the air tickets price”, Air Astana Press Service reports. “In 2011 Kazakhstan passed a law on state regulation of production of some types of petroleum products (…) This new law abrogates state regulation of prices for aviation kerosene. Consequently, the kerosene price hiked by almost 200%. Back in 2010 kerosene cost KZT 65 000 ($442) a ton, as of now the price is almost KZT 200 000 ($1360)”, Air Astana Vice President for PR Bella Tormysheva said. In January and February 2012 Air Astana incurred a loss of $11 million due to the growing prices for kerosene. The fuel charge is exactly the 16% air tickets price hike; this figure only compensates for part of the kerosene price growth. The Company seeks to rely on its own resources to cover the rest of the kerosene price growth. “It will have no effect on the quality of flights. The Company has had winglets installed on its Boeing family aircraft; this enables to save up to 5% of fuel (…) Besides, the Company is renegotiating fuel supply contracts (…)”, Ms. Tormysheva said.
Air Astana Airline has incurred losses of $11 million, Bnews.kz reports.
“In 2012 the Company’s kerosene expenses are set to grow by 60%. Before April 2012 in Kazakhstan there was no fuel charge for domestic flights. It only applied to international flights. Starting from April 5 the Airline raised its domestic flights tariff by 16%. The Company’s losses incurred due to growing prices for kerosene will have to be included into the air tickets price”, Air Astana Press Service reports.
“In 2011 Kazakhstan passed a law on state regulation of production of some types of petroleum products (…) This new law abrogates state regulation of prices for aviation kerosene. Consequently, the kerosene price hiked by almost 200%. Back in 2010 kerosene cost KZT 65 000 ($442) a ton, as of now the price is almost KZT 200 000 ($1360)”, Air Astana Vice President for PR Bella Tormysheva said.
In January and February 2012 Air Astana incurred a loss of $11 million due to the growing prices for kerosene.
The fuel charge is exactly the 16% air tickets price hike; this figure only compensates for part of the kerosene price growth.
The Company seeks to rely on its own resources to cover the rest of the kerosene price growth. “It will have no effect on the quality of flights. The Company has had winglets installed on its Boeing family aircraft; this enables to save up to 5% of fuel (…) Besides, the Company is renegotiating fuel supply contracts (…)”, Ms. Tormysheva said.
