In a report released at a news conference in Dushanbe, Tajikistan’s High Economic Court head Rustam Mirzozoda revealed on July 25 that Tajik national air carrier, Tajik Air, is on the verge of bankruptcy and it has no money to repay its debts.
According to some sources, Tajik Air’s debts exceed 40 million U.S. dollars. It owes 20 million U.S. dollars to Lithuanian UAB Skyroad Leasing alone.
Recall, Tajikistan’s High Economic Court in July last year satisfied the claim filed by Lithuania’s Skyroad Leasing against the Tajik national air carrier Tajik Air.
Bakhtiyor Naimzoda, the Judge at the High Economic Court of Tajikistan, told reporters in Dushanbe on July 22 last year that the High Economic Court has upheld Dushanbe Economic Court verdict’s which ordered Tajik Air in 2018 to pay an outstanding debt of 20 million U.S. dollars.
The Execution Service under the Government of Tajikistan is also seeking repayment of Tajik national air carrier’s debt Skyroad Leasing.
The Execution Service representatives told reporters in Dushanbe on July 20 that Tajik Air’s bank accounts have been frozen to recover this amount.
But the problems is that Tajik Air’s accounts are currently pending. Tajik national air carrier has reportedly owed a large amount in the form of taxes and other payments.
It is to be noted that Tajik Air in September 2009 entered into two identical lease agreements with a Lithuanian company called AB Avia Asset Management for the lease of two Boeing aircraft. The agreements required Tajik Air to pay monthly rent of US$149,000 for each aircraft and to return the two aircraft at the end of the 60-month lease period. On November 2, 2010, AB Avia Asset Management transferred all rights and obligations under the lease agreements to UAB AviaAM B03, which later became UAB Skyroad Leasing.
In 2013, after Tajik Air started falling behind on the monthly lease payments, Skyroad initiated arbitration proceedings pursuant to the agreements, resulting in an award of $2,824,000 plus interest. When Tajik Air remained delinquent on payments and failed to return the aircraft at the end of the leases, Skyroad initiated a second arbitration proceeding with the Vilnius Commercial Arbitration Court (VCCA) tribunal on September 5, 2017, whose ultimate award is the subject of this action.
After the Lithuanian court's decision, an appeal by the airline was rejected. On top of the USD20 million, the court demanded USD84,000 from the airline in legal costs.
The only state-owned aviation company in Tajikistan, Tajik Air has been experiencing economic difficulties for years.
In July 2020, the Government of Tajikistan wrote off about 2 million U.S. dollars of Tajik Air’s debts.
Currently, the airline staff members reportedly include only a few managers, while other employees of Tajik Air have been on unpaid leave since 2018.
