VZCZCXRO1696
RR RUEHLN RUEHVK RUEHYG
DE RUEHDBU #0210/01 0381210
ZNR UUUUU ZZH
R 071210Z FEB 08
FM AMEMBASSY DUSHANBE
TO RUEHC/SECSTATE WASHDC 0178
INFO RUCNCIS/CIS COLLECTIVE
RUCPDOC/USDOC WASHDC 0013
RUEHNE/AMEMBASSY NEW DELHI 0024
RUEHIL/AMEMBASSY ISLAMABAD 0043
RUEHBJ/AMEMBASSY BEIJING 0020
RUEHBUL/AMEMBASSY KABUL 0057

UNCLAS SECTION 01 OF 02 DUSHANBE 000210 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
DEPT FOR SCA/CEN 
COMMERCE FOR ITA 
 
E.O. 12958: N/A 
TAGS: ECON ETRD EAIR TI
SUBJECT: Tajik Commercial Air Service Modernization - Baby Steps 
 
 
Mixed News from Tajik Air 
------------------------- 
 
¶1. (SBU) In the past six months Tajik Air, the state-owned national 
carrier, has acquired four Boeing aircraft, all on wet-lease.  It's 
not quite the improvement that it seems.  The first two aircraft 
acquired were 25-year old Boeing 737s.  They are not allowed to land 
in Russia or the European Union due to inconsistencies in their 
maintenance records, but are flying between Dushanbe and Khujand and 
Almaty.  When they showed up here, media carried some commentary 
about their ineligibility to fly even to Russia, and the dubious 
financial planning involved in their acquisition (they might fly at 
a loss).  With these shortcomings, they might still represent a step 
up from Tajik Air's fleet of decrepit Tupolev 154s.  The Tajik Air 
Tupolev fleet has dwindled over the years as airplanes became too 
old to use, and the Dushanbe airfield is littered with these 
abandoned aircraft.  Only four Tu-154s actually fly, and these are 
reportedly within two years of the end of their service lives. 
(When their service will actually end is another matter.) 
 
¶2. (U) On a better note, in January 2008 Tajik Air leased a Boeing 
757 from Russia's VIM-AVIA, and is flying it to Russian destinations 
and Sharjah.  Tajik Air reports it has agreed to lease a second 757, 
and will soon begin to use both airplanes with Tajik pilots and 
cabin crew.  They plan to have the crews trained in the United 
States by Boeing subsidiary Alteon Corporation.  The government also 
continues to express interest in acquiring a new 737 to serve as a 
presidential aircraft and to fly commercial service for Tajik Air 
when not serving the president.  Newly promoted Deputy Prime 
Minister Alimardon insists the president would need a brand new 
aircraft - price tag $40-50 million. 
 
Somon Air -- a Better Bet? 
-------------------------- 
 
¶3. (SBU) Meanwhile Somon Air, Tajikistan's "first private airline," 
seems about to fly (after years of talk).  Somon Air is owned by 
Presidential brother-in-law Hassan Asadullozoda (formerly 
Saddulloev) and managed by former General Director of Tajik Air Mr. 
Mirzo Mastangulov.  Like most other people of influence in Dushanbe, 
Mastangulov is from the President's home district of Kulyob. 
Insiders at the new airline's parent company, Somon Capital, report 
that he is not an effective manager, and that they are seeking 
expatriate managers. 
 
¶4. (SBU) Somon recently acquired its first aircraft, a Boeing 
737-800 wet-leased from a Turkish company.  Somon says it will 
acquire more planes this coming summer, but will begin with this one 
plane flying to Moscow, Almaty, Urumqi, Dubai, and Istanbul on a 
weekly schedule.  This is largely a virtual airline, with 
maintenance carried out in Istanbul, few staff, and ticket sales 
being handled by Tajik Air.  This relationship has already proven to 
be a problem, as finding the tickets is difficult, and Tajik Air has 
prevented the Moscow service from beginning by holding up delivery 
to Russian civil aviation authorities of a code-share agreement 
between it and Somon Air. 
 
¶5. (SBU) Tajik Air probably also had a hand in a recent total 
disruption of air service with Russia.  On February 2 Russian 
authorities suspended all Tajik Air flights into Russia because 
Tajik civil aviation authorities tried to impose a fee of $15 on 
every passenger arriving in Tajikistan on a Russian carrier.  By 
Qevery passenger arriving in Tajikistan on a Russian carrier.  By 
late Saturday night the suspension had been temporarily cancelled, 
and the two sides have agreed to talk this out over the next few 
weeks. 
 
 
¶6. (SBU) Comment - Not a Free Market Revolution: Somon Air's 
strategy may be to eventually replace a dying Tajik Air with its own 
presidentially-connected monopoly, but Tajik Air's effort to 
modernize suggest the state airline isn't going under without a 
fight.  And as long as Tajik Air exists, it will try to hinder the 
development of independent air services.  An example of this is 
Turkish Air, which has tried for years to get a third weekly flight 
from Istanbul without success, despite (or because of) the 
overwhelming demand for its existing two weekly flights.  Relations 
with Uzbekistan represent another political distortion in the local 
airline market; air service to any point in Uzbekistan is 
non-existent, due to enmity between the two countries.  This is 
despite the fact that many Tajiks have family and business 
connections in Uzbekistan, and vice-versa.  Things are changing 
slowly here, and Tajikistan is still hard to access, expensive to 
get to, and generally off the map.  End Comment. 
 
DUSHANBE 00000210  002 OF 002 
 
 
 
 
JACOBSON