Azerbaijan implements new distance-based subsidy model for bus routes

The Azerbaijan Land Transport Agency (AYNA) has begun implementing a new distance-based subsidy system for regular passenger road transport, following a Cabinet of Ministers decision. Under the new ‘brutto contract’ model, transport providers will receive payments based on the distance traveled and the quality of service provided, rather than passenger numbers alone.

Initially, bus routes 130, 205, 211, 500, and 503 have transitioned to this system, with more routes expected to follow. The model pre-determines service indicators such as the number of buses per route, movement intervals, and distances covered. This approach aims to ensure reliable and predictable public transport, particularly during off-peak and evening hours when passenger numbers are lower.

By decoupling revenue from passenger volume, the system is designed to prevent carriers from prioritizing only high-profit routes, thereby improving service levels on less profitable suburban routes. Additionally, the model introduces more systematic oversight, utilizing specialized software to measure service quality and allowing for financial penalties if contract requirements are not met.