AZAL gives green light to low-cost subsidiary

Buta Airways is expected to get Embraers from its parent AZAL (Photo by AZAL)

The board of Azerbaijan’s state-run aviation holding AZAL has approved creation of a low-cost subsidiary. The new operator will be called Buta Airways and will be AZAL’s 100% subsidiary, announced the holding. The core of its fleet will be AZAL-owned Embraer E-Jet regional aircraft.

As of today, the Azerbaijani carrier operates one Embraer Е170LR and four Embraer Е190s.

The carrier earlier told Russian Aviation Insider that initially Buta’s fleet will consist of seven monotype aircraft. AZAL also announced plans to expand its fleet with 12 aircraft, but did not specify the type, nor mentioned whether these aircraft are intended for the parent carrier or its new low-cost subsidiary.

Buta Airways is expected to operate flights from AZAL’s base at Baku’s Heydar Aliev Airport starting from the fall of next year.

The Embraers designated for Buta will get its brand livery. The name Buta actually takes after a recognizable national ornament.  Its parent company announced that Buta will hire its own staff and elaborate an independent fare policy.

Since the end of last year AZAL’s flights to 13 popular destinations have been performed under a low-cost AZALJET brand name. Its sales and flight operation practices are similar to low-cost model. It offers a choice of additional services as paid options. However, AZAL earlier mentioned that it was difficult to implement this model to the full extent within the legacy airline.