Uzbekistan Airways SWOT: opportunities and challenges after reforms
Uzbekistan has emerged as an aviation market with huge potential, since president Shavkat Mirziyoyev took over two years ago following the death of the long-standing Soviet style dictator Islam Karimov. Uzbekistan has since embarked on a major reform path which has opened up tourism and is leading to a major restructuring of the air transport sector.
Uzbekistan is now focusing heavily on tourism, which has already experienced a more than doubling of visitor numbers over the past two years, and the country has put in place a new much less restrictive visa policy that should help drive further rapid growth. New policies aimed at encouraging growth in aviation have also been introduced, ushering in a new more liberal operating environment that should attract more foreign airlines and privately owned start-ups.
For the government-owned flag carrier, Uzbekistan Airways, the reforms create a more challenging environment of intense competition and an end to protectionism.
The airline is being separated from airports and other areas as Uzbekistan finally abandons the Soviet-style vertical structure in which the airline company controls virtually every facet of air transport, which has enabled cross-subsidisation with profits from monopolies in the airport and airspace sectors covering losses at the airline. The upside for Uzbekistan Airlines is that after a restructuring it should emerge as a leaner, more efficient airline with a strong position in a fast growing market on the cusp of a tourism boom.
Become a CAPA Member to access Analysis Reports
Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.
Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.
CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 400 News Briefs every weekday and comprehensive data and analysis on thousands of companies around the world.