On February 22, President Shavkat Mirziyoyev was presented with plans regarding the transformation of state-owned enterprises in the aviation sector.
The growth in aviation services in 2023 was a mere 11.6 percent. The country's strategy aims to quadruple the number of flights by 2030, requiring annual growth rates in the sector of no less than 20 percent.
Achieving this necessitates systematic efforts regarding infrastructure, management, pricing, and quality. Flight prices in Uzbekistan are relatively expensive, and the number and regional and international flights are lower than demand. The majority of flights are still concentrated in the airports of Tashkent and Samarkand. The airports' capacity to service aircraft and passengers is limited, and revenue from ancillary services constitutes only 7 percent of the total income. The transit potential of Tashkent, Navoi, and Namangan airports is not fully utilized.
The presentation detailed this year's plans to accelerate transformation processes in Uzbekistan Airways and Uzbekistan Airports joint-stock companies, expand service types, and increase revenue.
In particular, the national airline will begin the process of obtaining an international credit rating and launching an initial public offering (IPO). The airports of Bukhara, Namangan, Urgench, and Andijan will be handed over to private management and modernized. This year, a 20 percent increase in flight numbers is expected.
Measures will be taken to reduce expenses in the sector by 20 percent. Old aircraft with high fuel consumption will be sold, and modern, fuel-efficient aircraft will be acquired. Optimal routing on 72 routes will significantly reduce fuel consumption. Unused and unprofitable assets will be put up for sale.
Officials have been tasked with approving cost-reduction programs, increasing the competitiveness of services, and accelerating public-private partnership projects. The need to expand additional services at airports and to develop technical services for aircraft at Navoi Airport to fully utilize its potential was emphasized.
The involvement of foreign-qualified professionals in state aviation companies, as well as improving staff training, were also mentioned.
