Uzbekistan's airlines are set to sell old, fuel-inefficient aircraft and acquire modern, fuel-efficient ones. This announcement was made during a presentation on the transformation prospects of state-owned aviation enterprises to President Shavkat Mirziyoyev, Asia Plus reports.
The disposal of old aircraft is part of measures to reduce industry expenses by 20%. Significant fuel savings will be achieved by selecting optimal flight routes across 72 destinations. Unused and unprofitable assets will be put up for sale.
During the presentation, it was noted that in 2023, the volume of aviation services in Uzbekistan increased by only 11.6%. However, the country's development strategy until 2030 envisions a fourfold increase in air transport.
To achieve this goal, the industry's annual growth rate must be at least 20%. This requires systematic work in infrastructure, management, pricing, and quality.
"In our country, air ticket prices are relatively high. The number of both domestic and international flights is insufficient to meet the existing demand. The majority of flights still focus on the airports of Tashkent and Samarkand. The capabilities of airports to serve aircraft and passengers are limited, and additional services make up only 7% of their total revenue. The transit potential of Tashkent, Navoi, and Namangan airports is not fully utilized," the press release from the President of Uzbekistan's office stated.
President Mirziyoyev instructed responsible officials to approve a program for cost reduction in the aviation industry, enhance the competitiveness of services, expedite public-private partnership projects, increase the number of additional services at airports, and fully utilize the potential of air harbors.
The presentation also covered plans to accelerate transformation processes in the joint-stock companies Uzbekistan Airways and Uzbekistan Airports, expand services, and increase revenue. Specifically, the process of obtaining an international credit rating for the national airline and its IPO debut will commence. The airports of Bukhara, Namangan, Urgench, and Andijan will be transferred to private management and modernized. This year, the number of flights is planned to increase by 20%.
Until 2021, Uzbekistan Airways was the sole airline in the country. After criticism of the monopoly by the State Committee for Tourism in 2018, President Mirziyoyev instructed the restructuring of the airline and the creation of a competitive environment.
As a result, the number of airlines reached 15, including 10 private ones. Last year alone, 28 new aircraft were acquired. Over the past seven years, the number of flights has doubled. Thanks to the privatization of Samarkand Airport, passenger traffic has quadrupled, reaching one million passengers per year.
CentralasianLIGHT.org
February 23, 2024