Identifier
Created
Classification
Origin
06DUSHANBE1314
2006-07-13 12:23:00
CONFIDENTIAL
Embassy Dushanbe
Cable title:
TAJIK AIR STILL DOESN'T GET IT
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C O N F I D E N T I A L DUSHANBE 001314
SIPDIS
SIPDIS
STATE FOR SCA/CEN, INL
E.O. 12958: DECL: 07/11/16
TAGS: PGOV ECON EAIR EINV TI
SUBJECT: TAJIK AIR STILL DOESN'T GET IT
REF: Dushanbe 312
CLASSIFIED BY: Thomas Armbruster, DCM, State, State.
REASON: 1.4 (a),(c)
C O N F I D E N T I A L DUSHANBE 001314
SIPDIS
SIPDIS
STATE FOR SCA/CEN, INL
E.O. 12958: DECL: 07/11/16
TAGS: PGOV ECON EAIR EINV TI
SUBJECT: TAJIK AIR STILL DOESN'T GET IT
REF: Dushanbe 312
CLASSIFIED BY: Thomas Armbruster, DCM, State, State.
REASON: 1.4 (a),(c)
1. (SBU) SUMMARY: Five months after taking the helm of
Tajikistan State Airlines (TSA),Director Hakimsho Tilloyev
declined to identify any improvements or changes under his
leadership and instead complained about Turkish Air stealing
TSA's passengers to Istanbul. He informed PolOff July 12 that
SIPDIS
TSA still intended to modernize its fleet by leasing two
SIPDIS
"western-style" aircraft, but avoided mentioning Boeing.
However, Tajik Air was two to three years away from implementing
real structural reform by separating the airlines from the
airport and air traffic control functions, changes recommended
by the World Bank and the European Bank for Reconstruction and
Development (EBRD). "Nothing happens quickly here," he noted in
reference to the proposed reforms. "We do not want to make the
mistakes like Kyrgyzstan," where the state airline eventually
went bankrupt. END SUMMARY.
2. (SBU) In marked change from February meeting (reftel),when
he enthusiastically shared with EmbOffs ideas about streamlining
the bloated TSA staff and improving customer service and baggage
handling, Tilloyev had very little to say about his first half
year on the job. "We're working, " he shrugged. TSA is in the
process of creating a website for reservations, but Tilloyev
indicated their were still no immediate plans to join an
international reservations system.
3. (C) Turkish Air will not receive permission to run a second
weekly flight between Istanbul and Dushanbe. Tilloyev
complained that since Turkish Air began its flight in February,
TSA has suffered losses on it own flight to Istanbul, and had to
SIPDIS
consolidate its Munich and Istanbul flights into one. However,
he welcomed carriers such as Lufthansa or KLM, but reported they
were not interested. When pressed why he would allow another
European carrier, but refused Turkish Air a second flight, he
frowned. "Turkish Air will run us out of business to Istanbul.
As it is, we are down half a million dollars."
4. (C) Flights between Tajikistan and Moscow remain
lucrative, although competition from 13 different Russian
carriers flying to Tajikistan could threaten TSA's profits.
Tilloyev noted that running other international flights, such as
Dushanbe-Delhi, had cost the company up to $30,000 per flight
and were not viable.
5. (C) Tilloyev stated that an upcoming visit of Ernst and
Young consultants from Moscow was part of the technical
assistance attached to a $5 million EBRD commercial loan to
modernize TSA. (NOTE: TSA is currently paying off an $8
million EBRD loan to repave parts of the Dushanbe runway. END
NOTE.) Tilloyev was nonchalant about the role of the
consultants, claiming that Ernst and Young would decide whether
TSA should join the international reservation system.
SIPDIS
6. (C) COMMENT: Tilloyev appears only interested in doing the
minimum to modernize the airlines and preserve the status quo.
Tajik Air has long been a cash cow for TSA employees and other
powerful government officials. On any given flight a certain
number of seats are reserved for high-ranking officials, and
getting seats often involves paying extra to the ticketing
agent. True modernization could essentially kill the cash cow
by forcing transparency and competition in Tajikistan's
neo-Soviet airline sector. Kyrgyzstan's experience serves as an
off-cited cautionary tale for Tajik air authorities.
7. (C) COMMENT CONTINUED: Tilloyev's invitation to other
European carriers while rejecting a second Turkish Air flight
indicates he does not understand that international passengers
will choose ANY carrier, and any route, rather than suffer Tajik
Air. It also underscores his lack of understanding the
connection between business travel and attracting foreign
investment. As things stand, only the most intrepid business
travelers will make the effort to fly with Tajik Air. END
COMMENT.
HOAGLAND
SIPDIS
SIPDIS
STATE FOR SCA/CEN, INL
E.O. 12958: DECL: 07/11/16
TAGS: PGOV ECON EAIR EINV TI
SUBJECT: TAJIK AIR STILL DOESN'T GET IT
REF: Dushanbe 312
CLASSIFIED BY: Thomas Armbruster, DCM, State, State.
REASON: 1.4 (a),(c)
1. (SBU) SUMMARY: Five months after taking the helm of
Tajikistan State Airlines (TSA),Director Hakimsho Tilloyev
declined to identify any improvements or changes under his
leadership and instead complained about Turkish Air stealing
TSA's passengers to Istanbul. He informed PolOff July 12 that
SIPDIS
TSA still intended to modernize its fleet by leasing two
SIPDIS
"western-style" aircraft, but avoided mentioning Boeing.
However, Tajik Air was two to three years away from implementing
real structural reform by separating the airlines from the
airport and air traffic control functions, changes recommended
by the World Bank and the European Bank for Reconstruction and
Development (EBRD). "Nothing happens quickly here," he noted in
reference to the proposed reforms. "We do not want to make the
mistakes like Kyrgyzstan," where the state airline eventually
went bankrupt. END SUMMARY.
2. (SBU) In marked change from February meeting (reftel),when
he enthusiastically shared with EmbOffs ideas about streamlining
the bloated TSA staff and improving customer service and baggage
handling, Tilloyev had very little to say about his first half
year on the job. "We're working, " he shrugged. TSA is in the
process of creating a website for reservations, but Tilloyev
indicated their were still no immediate plans to join an
international reservations system.
3. (C) Turkish Air will not receive permission to run a second
weekly flight between Istanbul and Dushanbe. Tilloyev
complained that since Turkish Air began its flight in February,
TSA has suffered losses on it own flight to Istanbul, and had to
SIPDIS
consolidate its Munich and Istanbul flights into one. However,
he welcomed carriers such as Lufthansa or KLM, but reported they
were not interested. When pressed why he would allow another
European carrier, but refused Turkish Air a second flight, he
frowned. "Turkish Air will run us out of business to Istanbul.
As it is, we are down half a million dollars."
4. (C) Flights between Tajikistan and Moscow remain
lucrative, although competition from 13 different Russian
carriers flying to Tajikistan could threaten TSA's profits.
Tilloyev noted that running other international flights, such as
Dushanbe-Delhi, had cost the company up to $30,000 per flight
and were not viable.
5. (C) Tilloyev stated that an upcoming visit of Ernst and
Young consultants from Moscow was part of the technical
assistance attached to a $5 million EBRD commercial loan to
modernize TSA. (NOTE: TSA is currently paying off an $8
million EBRD loan to repave parts of the Dushanbe runway. END
NOTE.) Tilloyev was nonchalant about the role of the
consultants, claiming that Ernst and Young would decide whether
TSA should join the international reservation system.
SIPDIS
6. (C) COMMENT: Tilloyev appears only interested in doing the
minimum to modernize the airlines and preserve the status quo.
Tajik Air has long been a cash cow for TSA employees and other
powerful government officials. On any given flight a certain
number of seats are reserved for high-ranking officials, and
getting seats often involves paying extra to the ticketing
agent. True modernization could essentially kill the cash cow
by forcing transparency and competition in Tajikistan's
neo-Soviet airline sector. Kyrgyzstan's experience serves as an
off-cited cautionary tale for Tajik air authorities.
7. (C) COMMENT CONTINUED: Tilloyev's invitation to other
European carriers while rejecting a second Turkish Air flight
indicates he does not understand that international passengers
will choose ANY carrier, and any route, rather than suffer Tajik
Air. It also underscores his lack of understanding the
connection between business travel and attracting foreign
investment. As things stand, only the most intrepid business
travelers will make the effort to fly with Tajik Air. END
COMMENT.
HOAGLAND