Historic Memorandum of Understanding Signed by IATA Member Airlines based in Countries of Central As

First Ever Initiative Among Air Carriers in Central Asia to Strengthen the Aviation Infrastructure of the Region

On 2 June 2019, during the 75th Annual General Meeting (AGM) of the International Air Transport Association (IATA) in Seoul, Korea, representatives of two IATA member airlines of the Central Asia region, Peter Foster, President and CEO of Air Astana and Thomas W. Hallam II, CEO of Somon Air, signed an historic Memorandum of Understanding forging ties between the airlines to strengthen the civil aviation infrastructure and air carriers of the region.

This Memorandum of Understanding was agreed to by the signatory airlines on 13 May 2019 during the First Roundtable for CEOs of Central Asian Airlines held in Dushanbe, capital of Tajikistan, co-hosted by Somon Air and the Civil Aviation Agency of the Government of the Republic of Tajikistan. Delegates to the roundtable, which included the CEOs of Air Astana, Avia Traffic, SCAT Airlines, Somon Air, QAZAQ Air, and Uzbekistan Airways, discussed impediments to growth and development of air connectivity in Central Asia, aviation safety, jet fuel supply and other issues of importance to these carriers.

In addition to the airline delegates, representatives of IATA were present as observers and were requested to support the initiative and provide their knowledge as subject matter experts on a variety of issues facing the airlines of Central Asia.

During the one day of discussion amongst the attendees the following findings were agreed to and incorporated into a Memorandum of Understanding:

IATA has forecast world aviation passenger traffic to double by 2037 and expects a shift of the global economic center from West to East. Passenger traffic in Central Asia countries will grow as well and cooperation between the countries in the region will become crucial.

The challenges facing the airlines of Central Asia include:

• Aviation safety cannot be compromised. The signatory airlines and aviation-related bodies in the region must do their utmost to give the highest priority to the application of international safety standards, including International Civil Aviation Organization (ICAO) Standard and Recommended Practices (SARPs), EASA/FAA technical standards, IATA Operational Safety Audits (IOSA) and IATA Safety Audit for Ground Operations (ISAGO).
• Bring about full support of Performance Based Navigation (PBN) in the region to improve airspace efficiency and reduce flight times and fuel consumption.
• Encourage all Central Asia countries to ratify the Montreal Convention 1999.
• Increase cooperation between the signatory airlines and their respective governments to jointly develop national strategies to promote the aviation industry and overcome the impediments to growth in the region
  • For deeper integration and cooperation, ask the governments to unleash their full economic potential toward this end.
  • Increased connectivity is essential, and the governments are further asked to adopt the best international standards and practices, to invest in and develop an efficient infrastructure at a reasonable and transparent cost both in the air and on the ground.
• Appeal to the governments to use the best international practices regarding the application of visa regimes, taxation, customs duties, charges and fees, and any related policies and costs. For example:
  • Facilitate traffic growth in the region through liberalization of visa regimes.
  • Exemption from import custom duties on aircraft (both purchased and leased), spare parts, maintenance, etc. as proposed to be implemented in the Eurasian Economic Union from 2023.
  • Although the signatory airlines admit the importance of passenger data (API/PNR) processing for security reasons, such systems should not be funded by the airlines or by their passengers. API/PNR is currently implemented without any fees or charges in 94 countries worldwide.
• The signatory airlines are urged to implement global best practices to facilitate and secure sustainable jet fuel supply, as well as ensure the competitive jet fuel prices. Airports need effective national economic regulation based on key ICAO principles, namely transparency, cost-relatedness, non-discrimination and consultation with users.

It was agreed that this roundtable will convene biannually to be hosted by a Central Asian airline and its respective government on a rotating basis.

Commenting on the Roundtable, Raimonds Gruntins, Director Regional Affairs Europe, IATA, said, "We are pleased to see stakeholders from across the industry collaborate to ensure aviation continues to deliver more benefits to societies and economies, particularly in light of the doubling of passenger demand worldwide over the next two decades. Central Asia has an important role to play in this ambitious task. IATA is ready to provide the necessary support to help its members developing air transport in this fast-growing region."

Ikrom Subhonzoda, Director of the Civil Aviation Agency under the Government of the Republic of Tajikistan, added, "It was truly a great honor for us to host the First Roundtable for CEOs of Central Asian Airlines and experts from IATA. This event gave us the opportunity to discuss existing difficulties in the industry and ways to eliminate impediments for growth, as well as to talk about the multilateral cooperation of companies in the region and to establish joint efforts in terms of finding resolutions for challenges. In order to achieve the strategic goals, we need to put in a lot of energy and consult with our partners on these issues."

Thomas W. Hallam II, CEO of Somon Air, noted that it was a "great opportunity to meet with the experts who have real experience executing change in this complex region. Sharing views and exchanging ideas on common challenges was invaluable. In fact, the exchange of ideas was so dynamic, that we couldn't fully address all items on our agenda. It became clear to everyone the value of continuing the Roundtable commitment"

Added Peter Foster, CEO of Air Astana, "We shared our common vision about the great potential of aviation in Central Asia. The airlines of Central Asia face similar challenges and we have agreed on priority areas where we need to combine our efforts to bring up to date industry standards for the sustainable growth of air transport in our region."