Uzbekistan’s Aviation reforms set Uzbek Airways on a sound pathway for becoming a market leader in the Central Asian region

Tashkent, Uzbekistan (UzDaily.com) -- In connection with the recently published articles in the media referring to the World Bank Group’s report, the Private Sector Diagnostic for Uzbekistan, IFC, a member of the World Bank Group, informs that the report covers the period between April 2018 and June 2018.

The purpose of the diagnostic is to provide an objective analysis on the current situation in several promising sectors and to provide recommendations on the reforms needed. The report was presented to the Government of Uzbekistan in September 2018.

Considering the recommendations of the World Bank Group, and aligned with the country’s modernization priorities, the Government of Uzbekistan has already initiated a reform process of the aviation sector, set forth in the Presidential Decree signed in November 2018. As a result, the National Air Company is being aligned with best practices, separating airline and airport operations into independent corporations.

Ultimately, the reform is expected to yield benefits in terms of economic growth, improving the efficiency of state-owned enterprises, increasing competition, and maintaining high standards of safety.

With the support of the World Bank Group, Uzbekistan Airways is currently developing a business plan, with the aim of becoming a reputable market leader in the Central Asian region. With this objective in mind, today the company is focusing on expanding revenue streams and reducing its costs base.

At present, Uzbekistan Airways continues to serve all its debt and contractual obligations in full and a timely manner. Its short-term debt repayment capacity is in line with global industry averages, an indicator of an airline’s ability to sustain normal operations in the immediate future.

It should be reminded that in August 2018, the Government of Uzbekistan and the World Bank Group signed an advisory services agreement to support the modernization of the aviation sector in the country.  The completion of joint activities under this agreement is scheduled in June 2019. Thus, the outcomes of this work will be presented to the Government of Uzbekistan only in June 2019. 

Furthermore, today Uzbekistan has air service agreements with over 50 countries, whose designated air carriers can operate flights between two countries based on bilaterally agreed terms. Besides, the access for foreign air carriers’ flights is issued by the Civil Aviation Agency, an independent entity. With the formation of the Ministry of Transport, the national policy function with regards to air service agreements will be transferred to the new institution.

The World Bank Group stands ready to continue supporting Uzbekistan’s aviation sector modernization efforts.