Tuesday, 18, May, 2021

The Chairman of Uzbekistan Airports Ranokhon Djuraeva presented the company's transformation plan to the President Shavkat Mirziyoyev, the presidential press service said.

Currently the company owns 11 airports, each operating independently. In to the presentation, it was proposed to unite these airports under the management of a single governing body.

To improve financial stability, based on international experience, it is planned to reduce costs from 32 to 15%, minimize purchases, reduce airport tax by 27%, including up to 50% as part of pilgrimage tourism.

Particular attention is paid to increasing revenue, including through trade and services by building a cargo terminal at the Tashkent international airport, increasing transit between Europe and East Asia, expanding the area of ​​the airport terminal.

The presentation proposed to set the following as the main goals for Uzbekistan Airports in 2021 are:

  • formation of the cost of airport services (abandonment of the common pot method of accounting for costs - a method when all costs associated with production are included in production costs without distribution. It does not imply analytical accounting). In particular, if, according to the international standard, the wage fund and social taxes account for 40% in the structure of the cost of airport services (in Uzbekistan Airports it is 21.2%), depreciation of fixed assets - 15% (40.3%), current expenses - 30% (5.1%), others - 15% (32.4%);
  • centralization of purchases and audit of all expense contracts, exclusion of intermediaries;
  • introduction of IT technologies;
  • increase in the wage fund due to the introduction of incentive methods, minimization of the number of personnel;
  • reduction of airport services fares and tariffs by 27% and by 50% for pilgrimage tourism;
  • for airfield complexes, a temporary (for 5 years) reduction in depreciation deductions from 5% to 0.5%, real estate taxes from 2% to 0.2% and exemption from land taxes, which constitute in the cost structure of 1 ton of MTW (maximum takeoff weight) up to 20%.

Measures to cut the cost of ground handling (for example A320):

  • takeoff and landing - from US$ 1,220 to US$ 1,035;
  • acceptance of release (at regional airports) - from US$ 299 to US$ 237;
  • aviation security - from 122 to 104 dollars;
  • make passenger service for arrival free of charge (previously - US$ 569);
  • passenger service for departure - from US$ 2,730 to US$ 2,320;
  • airport terminal use fee - from US$ 1,706 to US$ 1,365;
  • safety of passengers - from US$ 1,137 to US$ 569;
  • keep pre-flight information services at US$ 32;
  • and other changes.

Shavkat Mirziyoyev gave instructions to develop airport infrastructure, increasing the passenger and freight traffic, organizing catering and other types of services at regional airports.

Ranokhon Djuraeva called the renovation of the Tashkent airport as the major task.

“We have plans for this year and for 2022 for a program for the reconstruction of the airport terminal - we will be increasing the throughput by 2 times (from 600 to 1200 passengers per hour), increasing the area for investment activities, increasing the area for passengers' recreation, catering, zones passengers' waiting space and, of course, we will provide normal access for departure and arrival. In addition, we have plans to build a new cargo terminal at the airport in order to support the growth rate of cargo transportation,” she said.

As reported earlier, Uzbekistan Airways will be transformed and switch over to a hybrid service model.

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