How many airplanes did Kazakhstan export in 2024
According to customs statistics, Kazakhstan exported 20 airplanes last year. One aircraft was sent to Georgia, Jordan, and Switzerland, five to Turkey, and a total of 12 aircraft to Ireland.
The total value of the exported airplanes amounted to $887 million. Thus, aircraft ranked eighth among the top ten goods that the republic supplies to foreign markets.
In terms of aircraft types, Kazakhstan shipped 19 liners (worth $796 million) with a capacity ranging from 50 to 300 passengers. One aircraft (worth $91 million) has a capacity of no more than 50 passengers. These are medium-haul narrow-body aircraft. Global leaders like European Airbus, American Boeing, Canadian Bombardier, and Brazilian Embraer specialize in their production.
We have yet to learn how to produce high-tech products such as medium-haul passenger aircraft. Kazakhstan has been and remains a net importer of airliners. So why have we begun actively supplying airplanes to foreign markets?
Which countries does Kazakhstan export airplanes to
It is unlikely that this is a re-export in the interest of Russian companies. Over the past ten years, excluding the results of 2024, customs statistics recorded anomalously high export shipments three times. All three instances occurred before 2022, when Western countries tightened sanctions against Russia. In 2015, Kazakhstan exported six airplanes for $105 million, in 2019 – 11 airplanes for $291 million, and in 2020 – 13 aircraft for $336 million.
This is due to complex aviation leasing schemes. Lessees often register equipment in another jurisdiction to optimize taxes or simplify maintenance. Air Astana, our largest airline, like any other airline, resorts to leasing contracts to optimize business processes.
What do deputies say about aviation leasing
Some details about aircraft leasing became known from a deputy inquiry addressed to the then Prime Minister of Kazakhstan, Alikhan Smailov, and his response to the elected representatives.
In January 2024, deputies of the Mazhilis stated that “the aircraft owned by Air Astana are registered not in Kazakhstan, but in Ireland.” In their view, this means that Kazakhstan does not have control over the property of the national carrier. At the same time, they did not forget to add to the inquiry the words of Peter Foster, head of Air Astana, that the company does not plan to register its aircraft in Kazakhstan. The deputies called on the Prime Minister to investigate and compel the airline to register the planes in Kazakhstan, as they believe it is in the country's interest.
The airline's arguments, which were presented before the deputy inquiry regarding the registration of the fleet, were deemed unconvincing by the deputies. Previously, Air Astana indicated that European registration allows the airline to operate flights to Western countries. According to the deputies, a quarter of a century has passed since the company's establishment, and during these two decades, the Civil Aviation Committee should have addressed all necessary issues.
“Another reason for registering aircraft in Ireland is also cited by experts as potential tax advantages of this jurisdiction,” the inquiry states. The Ak Zhol faction declared that the national carrier should not evade tax payments in its own country.
What does the government of Kazakhstan think about aviation leasing
The Prime Minister of Kazakhstan, in his response to the deputies, explained that Air Astana’s fleet consists of 50 aircraft (the response was published in January 2024). Of these, 24 are Airbus A320, 18 are A321, 5 are Embraer 190, and 3 are Boeing 767. They are registered in Ireland, with an average fleet age of 5 years. Out of the 50 aircraft, 18 liners belong to the fleet of the subsidiary Fly Arystan.
“The aforementioned aircraft are operated under leasing agreements with lessors from Western countries (Ireland: Avolon, SMBC Aviation, Aercap, USA: Air Lease Corp., and Singapore: BOC Aviation), which corresponds to global practices,” the Prime Minister noted in his response. For instance, major airlines such as Lufthansa, Turkish Airlines, and Qatar Airways acquire aircraft on lease from these leasing companies.
This practice is not prohibited by our country's legislation. The law "On the Use of Airspace of Kazakhstan and Aviation Activities" does not restrict the airline's rights to register aircraft. Therefore, the choice of jurisdiction is dictated solely by the owners' decisions. Owners are guided by the level of property rights protection, insurance, and the ability to carry out operational repairs of aircraft in a specific jurisdiction.
“Considering the international situation and sanctions restrictions for aircraft owners, registration in the registers of Western countries allows for advantages in mitigating sanction risks,” the head of the government clarified in response to the deputy inquiry.