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," said Rafael Schvartzman, IATA's regional vice President for Europe. "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."
Schvartzman noted that the BSP will also give access to airlines to cost-effectively process financial transactions globally while enabling global product distribution — providing 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.
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 projects revenue passenger kilometer growth for Uzbekistan over 2024-2050 is 3.3%, slightly higher than the global growth rate of 3.1%.
However, it noted that for this potential to be realized, IATA said the local industry should align 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.
IATA also noted the importance of infrastructure development. It said that 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 is also vital. IATA said 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.
IATA's 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.
IATA said 12,400 people in Uzbekistan are directly employed in aviation, generating US$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 US$795.5 million, or 0.9%, to GDP and supporting 128,000 jobs.
Meanwhile, 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.
