Kazakh authority proposes airline divestments to increase competition

Kazakhstan’s government is proposing to increase competition in the air transport sector by selling shares in airlines which are part of the Samruk-Kazyna sovereign fund. The country’s Agency for the Protection and Development of Competition points out that airlines with state participation – including Air Astana, its budget operation FlyArystan and Qazaq Air – account for 80% of domestic air transportation. It is putting forward a proposal to separate FlyArystan and establish it as a separate legal entity, followed by the sale of 51% of its shares. The agency is also looking to sell shares in Qazaq Air. FlyArystan operates budget services with a fleet of Airbus A320s and A320neos, while Qazaq Air uses De Havilland Canada Dash 8-400 turboprops. Under the competition agency’s proposal, FlyArystan would become a separate entity. The agency says the share sale proposal is intended to “create an independent player” in the low-cost sector and “increase competition between airlines”. It states that operator SCAT carries on much of the remaining share of domestic air transport, while three other airlines – Southern Sky, Zhezkazgan Air and Zhetysu – have less than 1% of the market. The airline measures set out are part of a broader framework to “demonopolise” sectors including oil, gas, electricity and rail, the agency says.<br/>