Azerbaijan airlines charts path to success amidst growing global competition

In a recent interview with Report, Jamil Manizade, Chief Commercial Officer of Azerbaijan Airlines (AZAL), provided insights into the airline's remarkable growth and strategic plans as it navigates the competitive landscape of global aviation.

J. Manizade highlighted AZAL's commitment to traditional airline standards, contrasting it with the low-cost carrier model. AZAL emphasizes a comprehensive range of services included in ticket prices—such as free baggage allowance, in-flight meals, and entertainment—aiming to offer a more comfortable and enjoyable flying experience. In contrast, low-cost carriers often focus on reduced fares by charging separately for these services, with ancillary revenue forming a substantial portion of their earnings.

In response to concerns about ticket prices, Manizade explained that AZAL strives to balance affordability with high service standards. While ticket prices can be influenced by factors like fleet maintenance, fluctuating fuel costs, and post-pandemic economic conditions, AZAL is actively working to optimize costs and offer more competitive pricing. Recent initiatives include special fare options without free baggage and strategic discount campaigns, which have successfully reduced average ticket prices by 18% in the first half of 2024.

The COVID-19 pandemic presented significant challenges, including reduced flight operations and a diminished route network. However, recovery began in 2021, with a notable acceleration in 2022. By 2023, AZAL achieved a 30% increase in passenger traffic, reaching a record 2.9 million passengers, with international flights growing by 46%. The first half of 2024 continued this positive trend, with a flight load factor of 80% and a 50% increase in seat capacity compared to the previous year.

AZAL's rapid growth has been accompanied by challenges, such as a shortage of aircraft and limited airport capacity. To address these, the airline has employed wet leasing and is working on expanding Heydar Aliyev International Airport. AZAL’s route network saw the addition of 31 new destinations in 2023, contributing to significant growth in passenger numbers and route expansion.

Looking ahead, AZAL aims to more than double its passenger traffic by 2030 and expand its route network to 80 destinations. The airline plans to streamline its fleet to just 2-3 aircraft types, reducing the average age to 5-6 years, which will lower maintenance costs and improve operational efficiency. New aircraft from Airbus and Boeing are scheduled for delivery, with a focus on modernizing the fleet and enhancing environmental sustainability.

To stay competitive, AZAL is implementing a hub-and-spoke model, optimizing connections for transfer passengers and improving operational efficiency. The airline is also investing in digital technologies, including a revamped loyalty program, enhanced mobile app features, and streamlined online booking processes.

AZAL is working to boost its international profile, with recent achievements including the title of Best Regional Airline in Central Asia and CIS by Skytrax. The airline is committed to incorporating Azerbaijani cultural elements into its services and enhancing its global reputation.

Azerbaijan Airlines is confidently advancing its position in the global aviation market through strategic growth, fleet modernization, and enhanced passenger services, all while navigating the complexities of post-pandemic recovery and intense competition.