Economy ministry mulls airfare, medicine prices

By Aynur Karimova - AzerNews 

The decrease in airfares and the regulation of the prices of medicinal drugs was high on the agenda of an extended board meeting of Azerbaijan's Economy and Industry Ministry held on July 23.

The meeting was devoted to achieving the goals announced at the meeting of the Cabinet of Ministers on the results of the country’s socio-economic development in the first half of 2015 and the objectives for the future, chaired by President Ilham Aliyev.

Speaking at the meeting, Minister Shahin Mustafayev said that the Ministry is conducting an analysis of airfares, and measures to reduce prices have been implemented in accordance with instructions given by the President.

Azerbaijan Airlines will establish its own low-cost passenger transportation line, as well as introduce new low-cost seating options on all existing flights. Its budget passenger transportation lines will operate round trip from Baku to Istanbul, Moscow, and Dubai.

AZAL also decided to introduce a new tariff policy aimed at reducing costs for all current flights. This tariff policy will not apply to the new low-cost routes. Starting August 1 this year, AZAL will apply a 20-percent discount to its minimum existing tariffs on economy-class flights.

As for drug costs, Mustafayev said a mechanism of price regulation has already been established. He added that price regulation by the government would significantly reduce the cost of medicines in the near future.

It was also noted that in accordance with instructions given by President Aliyev, the government will continue measures aimed at improving the standard of public services, and the construction of hospitals, kindergartens, and schools.

The Tariff Council of Azerbaijan has adopted a new mechanism for calculating the price of medicines. Using this new model, the Council determines wholesale and retail prices for medicines licensed by the state by referencing drug costs in partner countries.

Experts believe that the state regulation of drug prices will also have a positive impact on health insurance rates, since the insurance payments depend on the cost of medicines.

--