Buta Airways will eventually be no more as Azerbaijan Airline aims to reduce operational costs by mergig the low-cost brand into mainline operations.

Azerbaijan Airlines is in a period of simultaneous growth and consolidation.

Today, Azerbaijan Airlines and its low-cost carrier subsidiary Buta Airways announced that they will merge under a single brand, AZAL.

This move aims to reduce overall operational costs while increasing aircraft utilization and daily flight hours.

A relatively fast process

While it often takes airlines years to wind down their regional operations, such as when it took three years for regional carrier SilkAir to wind down its operations and merge with Singapore Airlines.

Buta Airways’ absorption into AZAL will happen much faster.

According to a press release by Azerbaijan Airlines, the Buta Airways low-cost brand will officially be retired in October 2023.

The Baku-based carrier will replace the airline with a new no-frills luggage-free fare class known as ‘Buta Budget’ onboard its own aircraft under the single brand – AZAL.

In a statement, Azerbaijan Airlines stated that the merger will include the best qualities of both airlines, further expand the opportunities for their passengers to travel at affordable prices, as well as ensure that our customers can plan their trips comfortably and increase the level of service provided to them.

After the merger, all Buta Airways flights will continue to be operated under the single brand of AZAL at the current affordable prices, but with a higher level of service.

Azerbaijan Airlines first launched Buta Airways in 2016.

Seven E190s operated by the low-cost carrier sport its unique livery, with an eighth painted back into AZAL’s livery at the end of May 2023.

All eight regional aircraft continue to fly Buta Airways routes across Russia, Turkey, and the Middle East.

With that said, there has been no announcement regarding the future of the E190 within the newly reorganized airline.

The decision to move the eight E190s of Buta Airways into the mainline AZAL fleet is being driven by projected financial savings and increased efficiency.

Azerbaijan Airlines believes the move will help it expand its domestic and international coverage.

AZAL does not operate any other regional jets.

Its mainline fleet currently consists of 21 jets, including four A319ceos, six A320ceos, three A320neos, two A340s, one B757, three B767s, one B777, and two B787-8s.

Earlier this year, Azerbaijan Airlines announced that it had ordered 12 Airbus A320neo family aircraft and eight new Boeing 787 Dreamliners.

A growing trend?

This type of consolidation is not just happening in Azerbaijan. Indeed, it is another instance of a growing trend throughout the aviation industry.

In 2020, Cathay Dragon was reabsorbed into its parent airline Cathay Pacific; in 2021, SilkAir was reabsorbed into its parent airline, Singapore Airlines.

Most recently, Thai Airways announced its plan to dissolve Thai Smile, and Canada’s second-largest airline, Westjet, announced its plan to dissolve its low-cost Swoop brand just five years after introducing the budget carrier.

This trend has been occurring for years, and in 2019, Simple Flying looked into this trend and why it wasn’t working for airlines.

The separation of brands often created confusion for passengers with connecting itineraries.

In some instances, unions took issue with duties being redistributed to lesser-paid and less-experienced employees.

Lastly, the airlines themselves are not scaled for low-cost operations.

Premium connecting passengers still want lounge access and premium amenities on flights, while low-cost or regional subsidiaries are not equipped to cater to this premium traffic.

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