Why is this important
The collapse of the unit economy could nullify efforts to develop private aviation in Uzbekistan. The story of Air Samarkand is a case of how operational miscalculations and exaggerated expansion rates turn growth into scalable losses.
What happened
- In 2024, the loss amounted to 182 billion soums, according to open sources.
- The company’s gross margin is minus 12.3%.
- The Ministry of Labor filed a lawsuit with the Samarqand court for 1.5 billion soums for delays in the payment of salaries to 464 employees.
- The company confirmed its debts on payments, citing delays from counterparties.
- From October 13, flights to Istanbul will be suspended. The refund for tickets after this date is promised in full.
- Flights are scheduled to resume in the spring of 2026.
Context
Air Samarkand is one of the last private air carriers in the Uzbekistan market after the departure of Humo Air and the failures of Panorama Airways. The company quickly increased its route network and staff, but failed to ensure operational stability. The key risk is the absence of a positive unit-economy: with such a cost structure, flight growth only increases losses.
