On April 19, President Shavkat Mirziyoyev got acquainted with a presentation on measures to transform Uzbekistan Airways and Uzbekistan Airports, the press service of the head of state said.
The main focus of company transformation is on improving efficiency. For example, Uzbekistan Airways is expected to cut costs by US$ 46.5 million. For this it is planned to:
- cut the staff of the company and its subsidiaries by 20%. This will reduce costs by US$ 3.9 million. Timeline - July 2021;
- close 20 ineffective offices abroad - 11 out of 15 offices in Russia, as well as in Amritsar, Mumbai, Paris, Milan, Rome, Tokyo, Bangkok, Jakarta and Kuala Lumpur (US$ 3.5 million). Timeline - June;
- abolish the positions of two regional and main representatives of the airline in the UAE and China (400 thousand dollars). Timeline - June;
- decommissioning 12 unused aircrafts - five Il-76 and seven Il-114 (US$ 380 thousand). Timeline - November;
- cancel 9 unprofitable flights - to Paris, Rome, Milan, Amritsar, Mumbai, Bangkok, Tokyo, Kuala Lumpur and Jakarta (US$ 12.3 million). Timeline - May;
- terminate agreements with 6 major ticketing agents in Russia, Kazakhstan, India, Pakistan, Israel and the United States (US$ 5 million). Timeline - May;
- reduce the commissions of foreign agents for the sale of air tickets from 9% to 5% (US$ 2.9 million). Timeline - May;
- reduce costs by purchasing fuel and lubricants on the basis of a tender (US$ 18.1 million). Timeline is June.
According to the presented presentation, it is planned to cancel 12 flights and launch a new flight to Kyiv.
The goal is to increase revenues by US$ 40 million per year. For this, it is planned to launch 14 charter flights to popular destinations and cargo transportation on new routes, the possibility of online check-in and seat selection on all domestic flights.
In accordance with the new business strategy, it is planned to switch over to a hybrid service model, according to which part of the flights will be operated on the full service carrier principle, and some on the low cost carrier principle. Business class will be canceled on destinations that are not in high demand, with an increase in seats in the lower class. They plan to sell 51% of the stake in the low-cost airline to an investor.
Starting from the Q3 of this year, it is planned to launch low-cost flights on 4 Airbus A320 aircraft. For the development of long-haul routes, it is planned to lease 3 Airbus А321 NEO LR airliners. The number of domestic flights is planned to increase from the current 17 to 49 per week.
In order to improve passenger service, it is planned to digitize the industry, including the introduction of the Aerolabs online service system and a CRM complex for managing customer relations.
