Uzbek President Shavkat Mirziyoyev on April 19 announced the planned transformation of Uzbekistan Airways and Uzbekistan Airports in a bid to improve the effectiveness of these companies.
New measures aim at reducing the expenses of Uzbekistan Airways by $46.5 million. The staff of the company and its structural organizations are set to be optimized, a total of 12 unused aircraft are to be decommissioned, the fee of foreign agents for the sale of air tickets is also to be reduced.
The introduction of new charter flights to popular destinations and cargo transportation on new routes, the possibility of online registration and seat selection on all domestic flights, all above, according to plans, would generate additional annual income at $40 million.
In accordance with the new business strategy, the companies would switch to a hybrid service model, according to which a part of the flights would be carried out on the principle of full service and another part on the principle of low-cost airlines. The government also plans to cancel business class on destinations with small demand.
Low-cost flights on four A-320 aircraft are to be launched from the third quarter. The company would also lease three Airbus A321 NEO LR airliners, increase the number of domestic flights from the current 17 to 49 per week.
The whole system is to be completely digitized to create better convenience for passengers.
As part of measures to improve the efficiency of Uzbekistan Airports, all eleven airports that operate within the structure would be united under the management of a single regulator.
To increase financial stability, based on international experience, the government plans to reduce costs from 32% to 15%, optimize purchases and reduce airport fees by 27%, including up to 50% in the framework of pilgrimage tourism.
Proposed for construction new cargo terminal at the Tashkent International Airport would increase revenue from trade and services, expand transit between Europe and East Asia. (Uzreport/Business World Magazine)
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