Qazaq Air: What Conditions Has Vietnamese Investor Set?

Kazakhstan is finalizing negotiations on the sale of Qazaq Air to the Vietnamese holding Sovico, Orda.kz reports.

The co-managing director for strategy and asset management of JSC Samruk-Kazyna Yelzhas Otynshiyev reported at a government session in the Majilis that key negotiations with the Vietnamese had been completed.

The main terms of the deal were approved on December 20 at a meeting of the state commission for economic modernization. By the end of the year, we expect a positive decision from the board of directors of Samruk-Kazyna and the government,
 noted Otynshiyev.

The Vietnamese investor has two key conditions:

• Repayment of a loan of 38.4 billion tenge by the end of 2044.
• Acquisition of 20 Boeing or Airbus aircraft within five years, with the possibility of extending the term for two years.

Sovico is ready to provide a guarantee. In general, we believe that these requirements will have a positive impact on the development of civil aviation in Kazakhstan and will have a positive effect on related industries such as logistics, tourism, trade, including through the launch of additional flights, added Yelzhas Otynshiev.

Several attempts have been made to privatize Kazakhstan's air carrier from the Samruk-Kazyna structure. Three auctions have been held, but none have taken place.

On May 23, 2024, reports surfaced that the Vietnamese holding SOVICO Group would privatize the airline.

The company has also received an offer to take the Turkestan and Qyzylorda airports into trust management.

Original Author: Anastasia Prilepskaya