[ad_1]
The aviation business of Mongolia is going through a tough problem. Higher scenario was anticipated with the specter of the worldwide pandemic loosening and worldwide airway restriction and regimes calming down, however the air transportation “ban” worsened the scenario. The disaster, conflicts, and restrictions brought on by the warfare between Russia and Ukraine have immediately and not directly affected the financial system of many international locations, together with tourism and aviation, however Mongolia is struggling essentially the most. It’s because the primary and brief routes of our nation, which obtain vacationers from the worldwide market, particularly from Europe by way of the territory of Russia and the circulate of passengers have stopped as a result of restrictions brought on by inter-state conflicts.
Readers might recall {that a} photograph exhibiting air visitors circulate not too long ago went viral on social media. Despite the fact that the airspace belonging to the territory of Mongolia was virtually empty, a lot of planes have been seen flying within the space round it, as if there was a visitors jam within the air. That image just isn’t an exaggeration or fiction, it’s a truth of the present scenario. The Civil Aviation Authority (CAA) mentioned, “The variety of plane passing by way of Mongolia has decreased considerably in 2020 to 2022. Since February of final yr, many international locations set a ban on Russia’s airway because of the dispute at present occurring between Russia and Ukraine. At present, air carriers from China, Russia, UAE, and Ethiopia move by way of our nation. In January 2022 and 2023, the variety of plane flying over the territory of Mongolia decreased by greater than 80 p.c in comparison with the identical interval in 2019,” they reported.
Airline income has grown at a gradual ten p.c charge yearly by way of 2019. For instance, within the yr earlier than the pandemic, Mongolia transported about 1.6 million worldwide and native passengers, over 133,000 airplanes safely flew over our territory and picked up 498 billion MNT in income from the airline business. Round 32 p.c of it, or 156 billion MNT, was generated from navigation income or charges for transit flights. Nevertheless, since 2020, the income of the business has began to lower dramatically, and the amount of cash collected from the airways has additionally understandably decreased. The business’s revenue decreased to 224 billion MNT in 2020, 189 billion MNT in 2021, and 215 billion MNT in 2022. This can be a 56 to 63 p.c lower from the pre-coronavirus interval. The variety of transit flights additionally decreased by 72 p.c. In 2019, Mongolia had the most important variety of plane in its historical past, 133,613, however in 2020, 71,442 flights, 68,715 flights in 2021, and 37,565 flights in 2022 flew by way of our nation. The quantity of income collected solely from the sort of service payment has been reducing yr after yr, reaching 62 billion MNT in 2022. Because of this it has decreased by 61 p.c in comparison with 4 years in the past. In the course of the peak of the pandemic, when many international locations carried out strict bans and restrictions, the variety of flights passing by way of our nation decreased by 47 to 49 p.c, and because of the affect of air visitors restrictions brought on by the political scenario, it has reached a historic low (72 p.c lower).
In recent times, there have been fairly a couple of experiences from authorities and personal sector organizations working proactively to extend air passenger visitors and negotiating with the governments of many international locations on this space. The federal government has introduced 2023 to 2025 because the “Years to Go to Mongolia” and has been implementing short-term packages geared toward restoring the financial system in a brief time period, and related organizations and officers have been specializing in rising the frequency of flights and passenger circulate and taking required measures. For instance, our nation has elevated the variety of weekly flights to the Republic of Korea, Republic of Turkey, and Japan by 20 to 40 p.c, or from 34 to 70 flights. As well as, points akin to constructing a big airport within the native space, importing plane with good capability, creating new flight routes, and liberalizing air transportation are at present being mentioned on the authorities degree. Nevertheless, until airspace utilization is improved and main intercontinental routes are opened, regardless of how a lot passenger circulate will increase, it’s extremely possible that the business won’t be able to generate important income. It’s as a result of Mongolia collects most of its income from the airline business by way of transit flights. However, vacationers are in search of the quickest and least expensive flights. Nevertheless, for Mongolia, the primary circulate, which acquired about 70 p.c of worldwide vacationers, has been closed, so it’s essential to spend extra distance to some locations. European vacationers are confronted with the selection of coming to our nation solely by direct flights to some locations: Istanbul, Frankfurt, and Bishkek.
In reference to the issues and situations arising in Mongolia, the CAA revised its airways final yr by order of the Minister of Highway and Growth. Of the 94 air routes, those that aren’t used recurrently have been eradicated, and 33 important routes have been established. Officers identified that this is among the targets included in “Imaginative and prescient-2050” and “New Revival Coverage”, and it’s talked about as the start of the work of reorganizing Mongolia’s airspace in a worthwhile method. Additionally, the specialists mentioned that they have been pressured to do that in line with the necessities of the Worldwide Civil Aviation Group. In consequence, our nation has renewed 80 p.c of its air routes and has the chance to fly to 33 locations and 100 cities in 23 international locations. However since then, there was no important progress or change. The income of the airline business didn’t even attain the extent of 2020. The variety of transit flights additionally has decreased by 72 p.c in comparison with the pre-pandemic interval. As a consequence of this, the query arises whether or not this reform was based mostly on sound analysis and knowledge and whether or not it was in a position to be carried out optimally.
For the reason that starting of 2023, 2,109 plane have flown over the territory of Mongolia. This can be a important lower from the identical interval final yr. In different phrases, the variety of transit flights is dropping yr by yr. In comparison with 2020, the variety of passengers, worldwide and native flights has elevated considerably throughout this era, however the income of the airline business has not modified a lot. Earlier than the coronavirus, a mean of 130,000 flights and 450 to 500 flights per day handed by way of our nation, however now there are 50,000 flights per yr and 70 to 80 plane per day. We cost 600 USD to 900 USD for highway utilization charges from one plane, after which it’s clear how a lot alternative we’re shedding.
By 2025, the Authorities set an formidable objective of accelerating the variety of transit flights to 250,000, worldwide and native flights to 500,000, and the business’s income to 1 trillion MNT. Plans have been accepted to move 1.5 million passengers by air this yr alone, and two million subsequent yr. Judging from the present scenario, the opportunity of attaining the objective could be very bleak, and the airline business continues to be in “ban”. The folks of the business themselves admit it. Two massive points, liberalization of air transport and enchancment of airspace utilization, are important challenges to the event of the sector.
[ad_2]
Source link
