Wednesday05 February 2025
toshkent24.com

An inspector is heading to the airports and airlines of Kazakhstan.

Kazakhstan's Prime Minister Olzhas Bektenov has instructed to enhance aviation safety measures following the crash of an Azerbaijan Airlines aircraft near Aktau.
В Казахстан направляется ревизор для проверки аэропортов и авиакомпаний.

He announced an unscheduled inspection of all airports and aircraft, during which the qualifications and competencies of the crews will be checked.

“This tragic event indicates that we also need to take certain measures regarding flight safety. First and foremost, it is necessary to conduct an unscheduled inspection and put the technical condition of airports and aircraft under special control,” said Bektenov.

Kazakhstan's Aviation Profits from Passengers

The aviation mobility of Kazakhstan's citizens is increasing. The modernization of airports enhances flight safety, improves transport accessibility and connectivity between cities, and fosters the development of new regional routes and domestic tourism.

The airport infrastructure needs to be updated. New projects could be funded from various sources. Public-private partnerships (PPP) are successfully implemented in many countries, allowing for the realization of large infrastructure projects by attracting private investments and substituting them for part of the budget expenses. The PPP mechanism helps save the budget and engage businesses in the development of airport infrastructure.

According to official statistics, Kazakhstan's air transport carried nearly 19% more cargo in the first 11 months of 2024 compared to the same period in 2023, totaling 25,000 tons. The number of passengers transported by air increased by 9.5% to 13.5 million compared to January-November 2023. During the same period, rail transport carried 19.2 million people.

Revenues from air transport operations amounted to 767.4 billion tenge. This includes 13.9 billion from cargo and baggage transportation, 753.5 billion from passenger transportation, and 9.7 billion tenge from leasing planes with crews.

In total, from January to November 2024, Kazakhstan transported 977 million tons of cargo: 391 million tons (40%) by rail, 314 million tons (32%) by trucks, 270 million tons (28%) by pipelines, 2.6 million tons (2.7%) by sea and coastal vessels, 350,000 tons (0.4%) by inland water transport, and 25,000 tons (0.03%) by air. The proportions shift in terms of cargo turnover, and the share of air transport changes as well, though not drastically.

Airport Tariff Regulation Prevents Profit Generation

Our country has significant potential for the development of the aviation industry, particularly in transit passenger and cargo transportation. Many aircraft traverse Kazakhstan's airspace from east to west, west to east, north to south, and back. Attracting just a few percent of this trajectory volume would yield a substantial boost in the development of domestic aviation, believes Erkhan Ospanov, representative of the civil aviation association, who spoke in parliament.

“If today cargo transportation through our airports is about 130,000 tons per year, it can realistically be increased gradually to 300,000, 500,000, and even several million tons thanks to domestic cargo companies and hub airports,” said Ospanov.

To achieve this, it is necessary to increase cargo capacities—Kazakhstan's air fleet—and expand airport infrastructure. National carriers are showing significant progress, but airports are unable to keep pace with this growth. Investments are required for the construction of airport infrastructure.

In the USA, all airports, except one, are state-owned. The government spends significant funds on their development and maintenance. In the UK, the largest airports are privately owned and developed with private investors' funds. Investment sources are limited to two: state or private capital and loans. Best practices utilize both sources simultaneously. The government, institutional investors—funds, private investors, and banks provide their funds with the main condition that the capital must return and return with a profit. This is only possible through profit, Ospanov explained.

The issue with the development of our airports is that airline revenues are not regulated, while airport tariffs are regulated. This is the main reason for the lag in airport development compared to Kazakhstan's airlines. Furthermore, airport services account for up to 5% of the ticket cost. An airline can lease an aircraft, which is standard global practice. Airports cannot lease a runway or passenger terminal. Significant sums of money need to be invested in this infrastructure, and achieving a return on investment is necessary, according to Ospanov.

According to him, the airport tariff regulation system does not allow for covering costs and generating profit, which is essential for expanding infrastructure. This also deters foreign and domestic investors from Kazakhstan's airports. Consequently, they are not attractive for transit flights—most of their infrastructure does not meet airline requirements.

In this situation, the only solution is significant liberalization of the industry regarding the cancellation of airport tariff regulation. For airlines in Kazakhstan, restrictions on the age of transport aircraft (25 years) have been lifted.

In conclusion, we ask, said Ospanov:

  • to abolish import duties on cargo aircraft, which would stimulate the development of domestic cargo airlines
  • to provide equal access for all professional market participants to aviation fuel through the stock exchange trading of locally produced aviation kerosene.

In turn, Deputy Albert Rau reminded fellow deputies that the transport and logistics sector should become the locomotive of the economy, as it needs to increase its share in the GDP structure from the current 6.1% to no less than 9% in the next three years.

In Almaty, Planes Dangerously Turn or Take Off Over the Zhetisu and Turksib Districts

The tragedy in South Korea highlighted the importance of choosing the location for an airport and the development of adjacent areas. There, a plane collided with a concrete wall, leading to such consequences. A similar incident occurred in Almaty with a Bek Air plane. The primary document for any airport is the master plan. The master plan addresses two main parameters: time and size. If an airport is located close to the city, over time, buildings will reach the boundaries of the runway. This is unavoidable and natural, says Erkhan Ospanov later on the META social network.

Bizmedia.kz tracked the opinions of his followers—the voice of the people is just as important to us as the expert's opinion.

— The areas around the airport are a tempting target for officials distributing land. Typically, all communications are brought to the airport: electricity, water, sewage, and there is transportation infrastructure. No one reserves land to ensure flight safety. In Almaty, the takeoff/landing zone has long been located over dense residential areas, and safety zones have practically disappeared.

— Moreover, planes in Almaty turn or take off over the Zhetisu and Turksib districts, which is where the danger lies.

— The Shymkent airport has opened. Good news. The south is rapidly developing. However, when comparing costs between Almaty and Shymkent airports, Almaty was too expensive.

— You cite the example of the USA, where airports are subsidized from the budget. And then you say you see no other option but to pass all expenses on to passengers?

— If you were more familiar with airport management, your rosy picture would dim. Modernizing airports requires billions in dollar investments. One de-icing machine, for instance, costs between $500,000 and $1 million. Renovating aprons, terminals, and runways involves hundreds of millions of dollars. How many years do you think a hypothetical Kostanay, which has 3-5 flights a day, would need to save for this?

— The minister wants to invite foreign investors. Do you think they will agree to invest money in our economy without a return? Either the state budget is taxpayer money, or it’s private investments; there are no other options.

— How will a hypothetical Kostanay return investments? By raising tariffs to the heavens? Then nobody will fly there.

— They will raise tariffs, and no one will fly. Absolutely correct. This means competition is at work. It would be right to let them decide for themselves. There are no fools working there.

— Infrastructure (particularly transport) needs to be built. Through the state budget or private investments. But it needs to be built. Without it, there will be no development. For those who argue, “Well, there is no activity.” And the reason there’s no activity is that there is no infrastructure. Our role is not local. We play on a large field called Eurasia. Or possibly more.

In response to a post on META by another author about the modernity of Doha airport and its winter garden, comments about the disgrace of Almaty airport appear.

— With modern airport construction, Almaty terminal is just some misunderstanding. A disgrace! No proper toilets, no gates.

— Almaty airport is fine.

— The worst thing I saw was the Food House café, with rotten chicken and decayed wooden plates.

— Someone made a comparison between Doha and Almaty airports. With the well-known garden in the port, their airport turned out to be twice as cheap as Almaty’s.

— The Astana domestic airport has also declined. And the toilets there stink. Plus, there’s often no water in the sinks. Let alone soap.

— Kazakh