Shavkat Mirziyoyev orders faster IPO preparations for Uzbekistan Airways

The corporate transition programs and IPO readiness protocols for Uzbekistan Airways, Uzsanoatqurilishbank, Uzbekgidroenergo, National Electric Grid of Uzbekistan, and Uztelecom are scheduled for completion before the end of this year. These major enterprises belong to the asset portfolio of the National Investment Fund of Uzbekistan (UzNIF), which is currently under the strategic management of international asset firm Franklin Templeton. Under the approved framework, authorities plan to float between 15% and 20% of the national airline's shares through an international public offering.

Following a thorough operational diagnostic of the airline, a dedicated transformation program spanning 115 specific measures was developed. Financial projections from Franklin Templeton indicate that successful execution of these initiatives could boost the annual operating profit of Uzbekistan Airways by $120 million. This growth is projected through route network optimization, a higher share of direct ticket sales, enhanced passenger service quality, a reduction in flight delays and cancellations, and improved commercial efficiency across subsidiary enterprises.

As a cumulative result of these structural reforms, the market value of the national carrier is expected to jump from its current $1.6 billion to $2.3 billion. However, presentations during the government meeting revealed that the current pace of implementing these vital reforms remains insufficient.

The president emphasized that the airline must rapidly enhance its corporate governance, tighten internal financial discipline, transition reporting strictly to international standards, and improve its baseline credit rating. He instructed officials to implement immediate, practical measures to maximize the carrier's broader investment appeal and resolve any procedural bottlenecks stalling the IPO timeline.

Considerable attention during the session was given to expanding the airline's active fleet. Although foreign tourist arrivals in Uzbekistan surged by 27.5% over the first five months of the year to reach nearly 5.5 million people, the national carrier has struggled to scale its operations quickly enough to match this rising demand. In response, Mirziyoyev ordered expedited decision-making for aircraft procurement, the establishment of a specialized, streamlined purchasing system for the airline, and the swift integration of international sourcing standards.

Furthermore, the president stated that Tashkent has all the necessary components to establish itself as the premier aviation hub in Central Asia. Achieving this benchmark will require the synchronized coordination of Uzbekistan Airways, Uzbekistan Airports, and the upcoming New Tashkent Airport under a unified long-term strategy focused on regional infrastructure, flight routing, and transit networks.

To systematically manage these overlapping initiatives, responsible officials have been directed to establish a dedicated project management office tasked with overseeing the transformation of all entities within the UzNIF portfolio. The directive mandates recruiting top-tier specialists with deep knowledge of international financial markets and practical corporate experience to state boardrooms, alongside drawing up rigid preparation schedules with strict enforcement mechanisms for each enterprise.