Air Kyrgyzstan OJSC could not withstand the competition due to the entry into market of the Turkish airline Pegasus, Russian Ural Airlines, S7, Yamal and private Kyrgyz airlines, report of the Accounts Chamber of Kyrgyzstan on the results of audit of the company for 2018-2019 showed.
According to the results of financial and production activities, there was a decrease in income compared to 2017. Fare schedules for all operated routes for 2018-2019 were not approved, as no flights were planned. The total wage arrears as of December 31, 2019 amounted to 13,485.9 million soms.
Analysis of accounts receivable showed that the work on collection of accounts receivable, control and supervision over their occurrence was at a low level.
As a result, a loss of 51,176.2 million soms was formed in 2018 and in 2019 – 41,313.9 million soms. The reason for the negative financial result was an increase in expenses. Accounts payable as of January 1, 2020 amounted to 165,609.8 million soms.
“Based on the results of the audit, it was recommended to develop an action plan to attract investments and make proposals to the government on support of domestic state-owned airlines and opening of additional parity routes,” the Accounts Chamber concluded. (24.kg/Business World Magazine)