Uzbekistan plans to launch low-cost flights

It should be recalled that in accordance with the presidential decree of November 27, 2018, on the basis of the national airline “Uzbekistan Airways”, two joint-stock companies were created – Uzbekistan Airways and Uzbekistan Airports. In the process of structural transformations being carried out today in the domestic economy, the transformation of these companies is also planned. The difficult economic situation caused by the coronavirus pandemic also requires the improvement of the aviation industry.

As the press service of the head of state reports, the main emphasis in the transformation of domestic airlines is on increasing efficiency. For example, Uzbekistan Airways is expected to cut costs by $46.5 million. For this, it is planned to optimize the staff of the company and its structural organizations, decommission 12 unused aircraft, and reduce the commission of foreign agents for the sale of air tickets.

Also, the goal is to increase revenues by $40 million per year. For this, it is planned to introduce charter flights to popular destinations and cargo transportation on new routes, the possibility of online check-in and seat selection on all domestic flights.

In accordance with the new business strategy, it is planned to switch to a hybrid service model, according to which part of the flights will be carried out according to the principle of full service, and some – according to the principle of a low-cost airline. Business-class will be canceled on destinations that are not in high demand, with an increase in seats in a lower class.

Starting from the third quarter of this year, it is planned to launch low-cost flights on 4 Airbus A-320 aircraft. For the development of long-haul routes, it is planned to lease 3 Airbus А321 NEO LR airliners, to increase the number of domestic flights from the current 17 to 49 per week.

In order to improve the convenience of passengers, it is planned to digitize the industry, including the introduction of the Aerolabs online service system and a CRM complex for managing customer relations.

Also, a number of measures have been developed to improve the efficiency of the Uzbekistan Airports JSC. Today the company manages 11 airports, each of which operates independently.

According to the presentation, these airports are proposed to be united under the management of a single governing body. In order to increase financial stability, based on international experience, it is planned to reduce costs from 32 to 15%, optimize purchases, reduce airport tax by 27%, including up to 50% within the framework of pilgrimage tourism.

Particular attention will be paid to the issue of increasing income. In particular, it is planned to increase revenue from trade and services by building a cargo terminal at the Tashkent international airport, increasing transit between Europe and East Asia, expanding the area of the airport terminal.

Mirziyoyev gave instructions on the development of airport infrastructure, increasing the volume of passenger and freight traffic, organizing catering and other types of services at regional airports.