Qazaq Air’s privatization tender process officially started Aug. 18.
The Kazakhstani carrier has five De Havilland Dash 8-400s in its fleet. In 2022, it operated to 22 destinations (16 domestic, 6 international) and transported 561,000 passengers with a load factor of 82%, generating a revenue of $44.3 million.
The primary aim of attracting a private investor is to foster the development and creation of new opportunities in Kazakhstan’s aviation market, which include expanding Qazak’s route map and fleet size.
“Once the privatization is completed, the next logical development for the carrier could be the expansion of the fleet with regional jets,” a source close to the transaction tells Aviation Week.
The privatization is being executed by the sole owner of the company, Kazakhstan’s sovereign wealth fund Samruk-Kazyna.
The Central Asian country has seen growth in its aviation industry in recent years and achieved another record year in terms of passengers, with 11 million in 2022—representing a 17% increase compared to the year before. The main growth factors include a robust domestic market resulting from the significant distances between the country’s major cities. It is the ninth-largest country in the world by territory.
Qazaq Air was founded in 2015 by the government of Kazakhstan. The airline reached positive operating income in 2022 and is slated for privatization by the end of this year, according to government plans.
It is one of the three main airlines in the country to hold an aircraft operator certificate (AOC). Astana-based Qazaq is member of IATA and possesses IATA Operational Safety Audit certification.
The leading carriers in Kazakhstan are Air Astana—including its low-cost unit FlyArystan, which operates 44 aircraft—as well as SCAT Airlines, which has 34 aircraft, and Qazaq Air, with five in its fleet. Qazaq has a market share in Kazakhstan of 7%.
A minimum price for 100% of shares is KZT10.2 billion ($22 million), Aviation Week understands.
Tender applications for the first stage close on Sep. 28, and the tender process is expected to be finalized by Dec. 15 this year.
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