Kazakhstan Airlines gets former government minister, but no government support (250 words)

Published: 1/17/2001

Mukhtar Ablyazov has been appointed Chairman of the Board of Kazakhstan's new state-owned airline, Kazakhstan Airlines (based in the country's capital, Astana). This suggests that the airline, which was announced a few months ago, will appear, despite the scepticism of commentators. The new national airline company, which is now in the process of being established, is basically the state carrier, Tselina Air Company (based in the region), renamed. 37-year Ablayzov, reportedly, has no experience of airline operation, having previously headed the now defunct Ministry of Energy, Industry and Trade, from 1998 until the fall of 1999. According to the Minister of Transport and Communication, Karim Masimov, ongoing state funding for the civil aviation sector will not be pumped into the new airline or the recently privatized Air Kazakhstan. He added that investment would be focused on the development of a leasing company, in partnership with BAE Systems. This company will be independent of both the new airline and Air Kazakhstan, although the two airlines and the smaller Kazak carriers, presumably, will be its customers. The development of a leasing company was discussed between BAE and Kazakhstan during a Presidential visit to the UK in November 2000. A BAE spokesman was however, unable to add any further information on the nature of such a venture. It does seem likely that the discussions may be connected to the acquisition of Avro RJ's, which are already operating in neighbouring Uzbekistan.

Article ID: 2298