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Azerbaijan to Pay Bus Operators Based on Distance and Service Quality

Operativ Media
Azerbaijan to Pay Bus Operators Based on Distance and Service Quality

Implementation has begun of the "Rules for Calculating and Paying Subsidies Paid for the Provision of Distance-Based Road Transport Services by Carriers Performing Regular Passenger Transportation by Road," approved by Decision No. 250 of the Cabinet of Ministers dated July 31, 2026.

Operativ Media reports that AYNA has released information about this.

Under the new "gross-cost contract" model, carriers will now be paid based on the distance traveled and the quality of service. The number of buses on the route, the interval of movement, the distance to be covered, and other service indicators are predetermined. The carrier is then paid for the service provided in accordance with these requirements. This will ensure that buses serve passengers and adhere to schedules even during off-peak hours, including in the evenings.

This model will allow for the creation of a more regular, reliable, and predictable public transport service for passengers. At the same time, it will prevent carriers from prioritizing only profitable routes and create conditions for improving the level of service on low-profit suburban routes.

The "gross-cost contract" model is widely used in many countries around the world to provide high-quality service to passengers. The successful implementation of this progressive model has now begun in our country.

Initially, regular routes 130, 205, 211, 500, and 503 have been integrated into the "gross-cost contract" system. Other routes will also be connected to this system soon in accordance with the requirements.

The new model also provides opportunities for more systematic control over the activities of carriers. In case of violation of the established quality requirements, financial and other enforcement mechanisms will be applied within the framework of the contract. Special software has been developed to measure the quality of service provided by carriers and to monitor the organization of the service.

The "gross-cost contract" model will also increase the financial sustainability and long-term planning capabilities of carriers. This, in turn, will allow for the renewal of the bus fleet, the purchase of modern and environmentally friendly vehicles, improved maintenance, and greater investment in service quality.

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