Andrew Chuter/BAKU

Azerbaijan's two largest airlines are looking to acquire Western aircraft so that they can expand their international and regional routes. The buying plans of Azerbaijan Airlines (Azal), and its privately owned rival Imair, are aimed at taking advantage of the influx of foreign investment, primarily to develop massive oil reserves in the Central Asian region.

Azal general director Djanguir Askerov says that the carrier already has an agreement with Boeing to purchase two 757s. This apparently supersedes an earlier letter-of-intent for six aircraft which was credited to the airline.

The powerful US Exim Bank is expected to underwrite the bulk of the 757 order, although its ability to offer Azerbaijan favourable terms is still blocked by a US Congressional limitation on aid to the ex-Soviet Union republic imposed at the time of the war with Armenia, over the disputed Nagorno-Karabach region. There is, however, optimism that the limitation, known as Amendment 907, will soon be lifted.

Askerov, who says that he has also been talking with Airbus over a potential acquisition of a minimum of two A310s, is pinning his hopes on obtaining resources to upgrade the Azal fleet using cash which will start to flow from oil revenues gained when the new foreign-developed Caspian Sea fields start to come on stream in 1998.

The Azal fleet is dominated by Tupolev Tu-134, Tu-154s and Yakovlev Yak-40s augmented with two Boeing 727-200s and two 707-320Cs. Askerov says that he hopes to be allocated government resources to acquire five or six new aircraft by the turn of the century.

He adds that, if the finance is right, he could also buy an Airbus A310 for routes which require a mix of passenger and cargo capacity. Azerbaijan officials are due in Paris this month to complete negotiations over starting services to Paris from Baku as part of a wider agreement with Air France. Askerov cites the route as an ideal application for the A310.

The airline, which serves destinations such as Dubai, London, Istanbul, Moscow, Tel Aviv and Tehran, as well as a host of regional and domestic routes, also has plans to extend its service to Europe and the Far East. Its priority is to re-equip with medium-range Western aircraft, leaving decisions on upgrading its regional fleet for at least two years.

The intention to concentrate on international growth has left the door ajar to rival Imair, started by the country's largest private company, Improtex, in 1994. The carrier is holding talks to upgrade its largely leased fleet of three Tu-154s (one owned)and three Ilyushin Il-76s with Western aircraft.

The fleet runs scheduled and charter services on passenger and cargo routes from Baku and Gyandja and expects to raise passenger numbers from 54,000 in 1996 to around 80,000 this year. Deputy executive director Nadir Safarov says that the carrier is planning to lease two Aero International (Regional) ATR 72s and a similar number of Boeing 737-400/500s to expand services in the region to destinations such as Ashkablad in Turkmenistan, Rostov in southern Russia and the domestic route to Nakchivan.

Acquiring the ATR 72s has priority, but Safarov says that he would like to see all the aircraft in operation by 2001. The aircraft will also replace the leased Tu-154s on routes such as those to Istanbul, Moscow and Tashkent.

Source: Flight International