Ulaanbaatar
Mongolian airlines’ competitiveness to be heightened
Society
Ulaanbaatar /MONTSAME/ Minister of Road and Transport Development J.Bat-Erdene has met with directors of the Civil Aviation Authority and airlines.
Tourism is an industry with a huge potential to push forward the socio-economic development. The Minister emphasized that airlines must play their role in attracting tourists flow. The companies presented obstacles the industry is facing.
For example, MIAT Mongolian airline mentioned that investment is needed to modernize the company’s technology, handle issues concerning human resources and air fleets. The company has borrowed over $120 million from international financial institutions in order to purchase “Boeing-767” airliner, $70 million of which is still to be paid. An upcoming move to the new airport at Khushig Valley is expected to cost a significant amount of funds, as well.
It is most likely for an airline company to suffer losses during the first three years of launching new international routes. Directors of the “Hunnu Air” introduced that it is possible to reduce ticket prices by 10% if the government exempts them from VAT during that three-year-period. In addition, they said it is necessary to open a new air way in order to develop border tourism.
Airlines “Sky Horse”, “Blue Sky” and “Thomas Air” noted the need to train competent pilots and aircraft inspectors.
In response, the Minister said, “A working group has been formed to work on revising legislature regarding air transportation. Representatives from airlines are welcome to join. A policy is to be pursued to support airlines in operating efficiently and enhancing their competitiveness. We are ready to hold dialogues in favor of increasing both domestic and international flights, and opening new airways. 10 years ago, Mongolia received 470 thousand tourists. This number hasn’t changed. Increasing number of tourists depends on your active participation.”
Tourism is an industry with a huge potential to push forward the socio-economic development. The Minister emphasized that airlines must play their role in attracting tourists flow. The companies presented obstacles the industry is facing.
For example, MIAT Mongolian airline mentioned that investment is needed to modernize the company’s technology, handle issues concerning human resources and air fleets. The company has borrowed over $120 million from international financial institutions in order to purchase “Boeing-767” airliner, $70 million of which is still to be paid. An upcoming move to the new airport at Khushig Valley is expected to cost a significant amount of funds, as well.
It is most likely for an airline company to suffer losses during the first three years of launching new international routes. Directors of the “Hunnu Air” introduced that it is possible to reduce ticket prices by 10% if the government exempts them from VAT during that three-year-period. In addition, they said it is necessary to open a new air way in order to develop border tourism.
Airlines “Sky Horse”, “Blue Sky” and “Thomas Air” noted the need to train competent pilots and aircraft inspectors.
In response, the Minister said, “A working group has been formed to work on revising legislature regarding air transportation. Representatives from airlines are welcome to join. A policy is to be pursued to support airlines in operating efficiently and enhancing their competitiveness. We are ready to hold dialogues in favor of increasing both domestic and international flights, and opening new airways. 10 years ago, Mongolia received 470 thousand tourists. This number hasn’t changed. Increasing number of tourists depends on your active participation.”
O.Onon
