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Airport Management Department established in Kazakhstan

30 july 2013, 16:47
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Airports Management Department has been established on the basis of Kazakhstan's transport-logistics center. The Department will hold stock of 11 airports, chairman of the Civil Aviation Commission of Kazakhstan Ministry of Transport and Communications Beken Seidakhmetov told Primeminister.kz.

According to the official, the Department has been created to consolidate management of the companies, form a development strategy and manage the airports in line with international standards. The step is expected to improve the efficiency of the airports and the quality of services they provide, he stressed.

“For example, it takes our airports an hour and a half to service one aircraft, whereas international air hubs do it in around 40 minutes. This affects efficiency of both aircrafts and ground services. Foreign company Lufthansa Consulting has been contracted to make the airports development strategy. The company deals with analysis of the aviation services market, lowering of exploitation costs and improvement of commercial efficiency of airports,” he noted.

Currently 10 out of 18 key airports of Kazakhstan are incurring losses, Seidakhmetov said. These are mainly regional airports with low air traffic intensity. Airport services make 12 percent of flight hour cost in Kazakhstan, which corresponds to the international practices.

Airports are subject to natural monopolies regulation in Kazakhstan which makes it very difficult for them to raise their rates, as it would require very serious substantiations, Seidakhmetov said. On the other hand, the airports have to cover their expenses on rendering of services, ensuring flights safety and maintaining the airport services quality, he said.

Step have already been made to improve the airports condition. The legislation governing natural monopolies has been amended to lift restrictions from airports on making profits from non-core-activities.

Besides, runways have been reconstructed in half of the airports and terminals were reconstructed in 11 airports over the past 10 years. According to Seidakhmetov, the plan is also to expand the terminal in Astana airport.

“The capacity of Astana airport’s terminal is going to be doubled before the EXPO-2017, as there will be many vistors arriving. The feasibility study is being made for the expansion of Astana airport,” the official said.

Earlier the officials spoke about plans of transferring 11 state-owned airports into foreign management to improve their business processes and efficiency.

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