analysis
ANALYSIS: Kazakh government struggles to help airlines off EU blacklist
(bne) - The relegation of all but one Kazakhstan-registered airline to the EU’s air safety blacklist was a blow to national pride as well as a setback for the air transport sector. The government is now working to have Kazakh airlines removed from the list by the end of this year.
By Clare Nuttall (business new europe)
The decision was based on an audit from the International Civil Aviation Organisation (ICAO). Published in April 2009, it revealed serious deficiencies in Kazakhstan’s air safety practices. Despite a series of meetings between Kazakh and EU officials in the following months, in July 2009 all Kazakhstan-registered airlines with the exception of Air Astana were placed on the list of airlines banned within the EU.
The problems stemmed mainly from a lack of investment in the sector. Despite efforts by the Kazakh government to grow the air transport sector, the Civil Aviation Committee’s regulations and oversight rules had changed little since the end of the Soviet era. Low salaries also meant it was difficult to attract skilled personnel.
The decision was an embarrassment for the government, which aims to establish Kazakhstan as a regional financial centre and business hub. Good air transport links are a key part of the project. “Kazakhstan - a rapidly developing country - and suddenly the blacklist,” lamented Prime Minister Karim Massimov at a meeting at the Transport and Communications Ministry, Kazinfom reported. Telling Transport Minister Abelgazy Kusainova that 2009 was “not the brightest day” for Kazakhstan’s airline sector, he instructed the ministry to make the removal of Kazakhstani airlines from the list by the end of 2010 a priority.
In the air
Air Astana, which is owned by Samruk-Kazyna and BAE Systems, escaped the list thanks to its compliance with international safety standards. The company’s defence, when it argued against inclusion on the list, was also based on its comprehensive Air Safety Review process, experienced multi-national management and key input from a strong foreign shareholder, according to chairman Peter Foster.
While Air Astana can continue operating flights to Europe - where it serves destinations including London and Frankfurt - it is currently banned from launching new routes to Europe. “This is not a problem for us in the short term as no new services to the EU were planned for 2010,” Foster told bne. The airline had its most successful performance to date in 2009, despite the international economic crisis, and it continues to open up new routes mainly to Asian and Middle Eastern destinations.
Meanwhile, the government is working to have other Kazakhstan-registered airlines removed from the list. A draft law, On the use of airspace of the Republic of Kazakhstan and on Aviation, is currently being considered by the parliament. Among other steps, the Civil Aviation Committee has set up an independent inspectorate and recruited qualified inspectors from Aruba.
There has already been one success; Berkut Air was removed from the list in December 2009. The Ministry of Transport and Communications aims to have an additional four airlines removed from the list in February 2010, Kazakhstan Today reported. The airlines in question are believed to be Prime Aviation, Burunday-Avia, Avia Continental Airline and GTR.
But while Kazakhstan is making progress, a source close to the European Commission told bne that measures envisaged by Kazakhstan need to progress significantly to improve safety.
For most local airlines, the ban has little relevance, since Air Astana was the only airline operating flights to Europe when it was introduced. Although Shymkent-based Air Company Scat provides international flights, most Kazakhstan-registered airlines mainly provide private and charter services within the country, where air travel is popular thanks to the country’s large size.
On international routes, Air Astana mainly faces competition from international airlines, with airlines such as Lufthansa, KLM and Etihad all serving Kazakhstan destinations. Foster does not rule out additional competition should the ban be lifted, but points out that ” long haul routes are expensive and the financial status of potential competitors is unproven.”
Tags: Related articles
Discussion
2 comments for “ANALYSIS: Kazakh government struggles to help airlines off EU blacklist”
Post a comment
Kazhak Government is corrupt. The only reason they are trying hard to remove the airlines from blacklist is because the President who owns most of these airlines like Burundai Avia is personally losing millions after UN cancelled Burundai contracts.
Shameful!
Honestly, the only air company I’ve ever heard of is Air Astana and I’ve lived here for 6 years. For normal people this black list is meaningless because we don’t use Burundai Avia or Berkut or whatever. I assume these airlines are either local or go to the EU only when chartered by rich businessmen or powerful politicians. The comfort of the people in power should never be a government priority.