Tashkent – The International Air Transport Association (IATA) announced that it is establishing a permanent presence in Tashkent, Uzbekistan, opening a new office and preparing for the launch of a Billing and Settlement Plan (BSP) in the country before the end of the year.
"Uzbekistan is a growing market that is taking a leading position in Central Asia for passenger and cargo traffic. The IATA office and BSP in Uzbekistan will provide strategic support to grow air travel through boosting aviation safety and operational efficiency. With the opening of our office, IATA experts will be more available to assist airlines and airports to implement global standards in safety and operations," said Rafael Schvartzman, IATA's Regional Vice President for Europe.
"Importantly, the BSP will give access to airlines to cost-effectively process financial transactions globally while enabling global product distribution. This provides greater opportunity to grow international connectivity. Aviation in Uzbekistan currently generates some 0.9% of national GDP and creates more than 128,000 jobs. With the right government policies in place, there is scope for this contribution to grow substantially. IATA looks forward to being a proactive support in building this future," said Schvartzman.
Strategic Development
Uzbekistan is looking to leverage its location in Central Asia to become a key regional hub, offering air connectivity to its neighbors and also links to Asia, the Caucasus, and Europe. IATA's projected revenue passenger kilometer growth for Uzbekistan over 2024-2050 is 3.3%, slightly higher than the global growth rate of 3.1%. For this potential to be realized several key elements are critical:
- Alignment with global standards and best practices: Central to this is the adoption of the IATA Operational Safety Audit (IOSA) which will enhance confidence in the safety of airlines in Uzbekistan.
- Infrastructure development: New airports being constructed in Tashkent, Bukhara, and Urgench will provide much-needed new capacity to support growing passenger numbers and cargo volumes. However, it is important that these airports are constructed cost effectively and in consultation with airlines so that the airports operate to user needs and are not burdened with excessive charges.
- Clean energy transition: Refining Sustainable Aviation Fuel (SAF) to international standards will support aviation's development, energy security, and the potential for developing an export business. Uzbekistan has tremendous potential to capitalize on its Gas-to-Liquids experience with a focus on renewable or low-carbon gases to ensure environmental integrity and international acceptance.
About IATA's BSP
The BSP is a worldwide system designed to facilitate and simplify financial transactions between IATA-accredited passenger sales agents and BSP airlines. The BSP tracks and manages sales of air tickets and the financial transactions associated with them across hundreds of airlines and tens of thousands of agents, globally. Access to a BSP offers airlines a significant advantage to manage sales with financial confidence and grow connectivity.
Value of Aviation in Uzbekistan
- 12,400 people are directly employed in aviation, generating USD 96.5 million in economic output, equal to 0.1% of total GDP. Additional benefits are generated by the wider supply chain, employee spending, and tourism activities, contributing a total of USD 795.5 million, or 0.9%, to GDP and supporting 128,000 jobs.
- Tourism directly supported by aviation contributes USD 282.9 million to the country's GDP, while international tourists to Uzbekistan are estimated to contribute USD 2 billion annually to the wider economy through the purchase of goods and services from local businesses.
- 66,600 tonnes of air cargo were transported through airports in Uzbekistan in 2023. With the opening of a dedicated cargo terminal at Tashkent Airport and continued growth at Navoi's dedicated cargo airport, further growth in cargo volumes is expected.
> See the Value of Air Transport Study for Uzbekistan report (pdf)
