In a report released at a news conference in Dushanbe, Tajik Air (Tajikistan’s national air carrier) Director Parviz Shodmonzoda noted on July 28 that Tajik Air is expected to resume flights within the next few months. However, he did not name the exact date of the start of flights.
According to him, now the issue with the company’s debts is being resolved, “but “they [debts] will not affect the resumption of work in any way.”
It is to be noted that Shodmonzoda stated about the resumption by Tajik Air of flights in the near future back on February 1 this year. Tajik Air director noted at the time that the company had dry-leased two Airbuses from Turkiye in late December last year and hopes to resume flights.
“Proposals on resumption of flights and confirmation of the use of the leased aircraft have been sent for consideration to Prime Minister Rasoul Qohirzoda and Tajik Air’s Supervisory Board,” Tajik Air top manager told reporters on February 1.
Shodmonzoda told Asia-Plus in an interview on July 28 that the Prime Minister and Tajik Air’s Supervisory Board had approved the proposals on resumption of flights and confirmed the use of the leased aircraft.
“The Ministry of Finance was instructed to resolve the issue of internal debts of Tajik Air. A working group has been set up to deal with this issue,” Tajik Air top manager told Asia-Plus in an interview on Friday last week.
He further noted that they this month have signed a five-year agreement with Saudi Arabia’s Al Kayan Group under which, the Saudi company will help Tajik Air with the search for aircraft for leasing.
Al Kayan Group is a consortium of major companies in different connected fields, who have been in the market since 1993.
Shodmonzoda also noted that Tajik Air is currently considering the issue of acquiring ATR-42 planes for operating flights from Dushanbe to Khorog, the capital of the Gorno Badakhshan Autonomous Region, or GBAO.
The ATR 42 is a regional airliner produced by Franco-Italian manufacturer ATR, with final assembly in Toulouse, France. Launch customer Air Littoral operated its first revenue-earning flight in December of 1985. The high-wing airliner is powered by two turboprop engines, Pratt & Whitney Canada PW120s. The number "42" in its name is derived from the aircraft's original standard seating capacity of 42 passengers. By the end of 1986, the ATR 42 had accumulated a sizable backlog of orders, which in turn led to a ramping up of the type's rate of production.
Besides, the company reportedly plans to repair Boeing 737, which is currently at Moscow’s Vnukovo Airport. “The repair will cost approximately 1 million US dollars,” Tajik Air top manager told Asia-Plus in an interview on Friday.
Tajik Air has not operated flights since September 2020 due to technical and financial problems.
Tajik Air top manager said on February 1 that the company’s current accounts receivable amount to 60.1 million somonis (equivalent to more than 60 million US dollars at the rate on the day of exchange) and its current accounts payable amount to 449.3 million somonis (equivalent to 44 million US dollars at the rate on the day of exchange).
In July 2020, the Government of Tajikistan wrote off about 2 million U.S. dollars of Tajik Air’s debts.
It is to be noted that Tajik Air’s accounts payable include a US$20 million debt to Lithuanian UAB Skyroad Leasing.
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.
Tajikistan’s High Economic Court reported on July 25 last year that Tajik national air carrier is on the verge of bankruptcy and it has no money to repay its debts.
Tajikistan’s High Economic Court in July 2021 satisfied the claim filed by Lithuania’s Skyroad Leasing against Tajik Air. The High Economic Court has upheld Dushanbe Economic Court’s verdict, which ordered Tajik Air in 2018 to pay an outstanding debt of 20 million U.S. dollars.
However, Shodmonzoda told Asia-Plus on July 28 this year the debt to UAB Skyroad Leasing “has been accrued artificially.”
The only state-owned aviation company in Tajikistan, Tajik Air has been experiencing economic difficulties for years.
Currently, the airline staff members reportedly include only a few managers, while other employees of Tajik Air have been on unpaid leave since 2018.
In early December 2022, Tajik Air and Tajikistan’s privately owned Somon Air were exempt from paying value added tax (VAT) when importing aircraft (planes and helicopters), engines and fuels and lubricants for them into the country. The companies were reportedly exempt from paying VAT for the period until 2027.
It is to be noted that currently only one domestic air carrier, Somon Air, operates in Tajikistan’s civil air traffic market.
The national air carrier, Tajik Air, has not been in operation for already years as it does not have aircraft suitable for this.
Tajik Air (Tajikistan Airlines) has its main hub at the Dushanbe airport, and it retains a secondary focus point at the Khujand airport. The company started operations on September 3, 1924 as Tajik Aviation. Its first route was Bukhara to Dushanbe, served by Junkers F-13 aircraft. It is the sixth oldest airline still in operation. Until 2008, Tajik Air had an absolute monopoly in Tajikistan’s air transport, owning all planes, airports, and airport and flight services. As a result of restructuring, Tajik Air was split up into several separate companies.
