The government of Uzbekistan has launched a large-scale program to optimize expenses in major state transport companies. “Uzbekistan Railways,” Uzbekistan Airways, and Uzbekistan Airports have been tasked with reducing the cost of their services by 20 percent.
This measure was introduced as part of a strategy to increase the country's economic efficiency and enhance competitiveness within the macroeconomic indicators set for 2026, discussed at a recent meeting chaired by President Shavkat Mirziyoyev. In his latest interview with the Uzbekistan 24 TV channel, Minister of Transport Ilhom Makhkamov confirmed that the task to reduce expenses was assigned to the companies at the beginning of the year.
He stated that specific action plans have been developed to achieve the goal and that the deadline for fulfilling this task is the end of 2025. At the same time, the Ministry of Transport plans to issue a separate resolution within the next week that will define the objectives for optimizing costs and reducing the service cost for the three major transport companies for 2026.
These steps are being taken against the backdrop of a significant increase in the cost of transport services provided to the public. According to the National Statistics Committee, over the past year, the price of domestic passenger airline tickets has risen by 57.3 percent.
In terms of price growth, airline tickets come only after driving courses (73.3 percent) and carrots (57.5 percent). In March of this year, Chairman of the Management Board of Uzbekistan Airways, Shukhrat Khudoykulov, reported about the president's instruction to hold airline ticket prices steady and closely monitor the pricing process.
Later, in May, the Committee for the Development of Competition and Protection of Consumer Rights warned airlines that it is not permitted to artificially create a shortage of tickets. After that, Uzbekistan Airways, together with its subsidiary Silk Avia, announced price reductions on some domestic routes.
Previously, representatives of the anti-monopoly authority pointed to aviation kerosene shortages as one of the main reasons for the high price of airline tickets. This type of fuel accounts for more than half of the ticket price.
At the same time, the agency did not find evidence of restricted competition in the market. The transformation process covers not only pricing policies but also other sectors.
State transport companies are fulfilling the task of obtaining credit ratings from the “big three” rating agencies like Moody’s, Fitch Ratings, and Standard & Poor’s. A thorough audit of the direct procurement system is also planned.
According to Makhkamov, a detailed action plan will be developed to ensure the successful fulfillment of all objectives. Aviation kerosene, the main type of fuel for jet aircraft, must have a low freezing point.
For example, the widely used TS-1 grade freezes below -60°C. This is important, as the outside air temperature at cruising altitude can reach -65°C or lower.
