Kyrgyzstan
Striving towards democracy and economic development

Mr. Arsaliev Erik Seidalievich

Read this interview in russian
Mr. Arsaliev Erik Seidalievich

President of International Airport Manas
October 1st 2002
 
Could you tell us about your airport, as mot of our readers don't know what "Manas" airport is and the latest developments which have taken place here after 11th September?

Airport Manas was a dead-end airport during the soviet times, but after the collapse of Soviet Union the previous managers of the Airport managed to move it towards the international market and since that time we are conquering international air-companies, trying to attract them here and striving to promote ourselves in the air business world. I think that unfortunately there was a bad reason that brought attention to our Airport, I mean the events of 11th September, behind that good push there has followed Kyrgyzstan's participation in the anti-terrorist coalition. This has of course been a political issue but nevertheless it was has been a big plus for the airport. Since the last year when the coalition forces began to allocate themselves here, we have been attracting a lot of cargo air companies which were transporting loads and since that time 3500 landings and departures by the forces attracted to this campaign were implemented from our Airport. Aside from this there has been such big worldwide transporter companies like Korean Air, Pabor Air, Avi Green and other rather huge air-companies which would not come to our airport under any other circumstances. For example, Korean Air is making intermediate landings in Tashkent, as far as I know about 6 flights per week, practically every day, and all of us know that there is a strict control concerning bringing in and repatriation of foreign currency from Uzbekistan. Kyrgyzstan in this regard is much more liberal, but unfortunately foreign experts visited our airport and argued that our platform is not adapted technically for such types of aircrafts for long-term parking. The money influx from the coalition forces particularly, has allowed us to extend our platform by our own efforts and we are now planning to finish construction of 3 parking places for Boeing 747 by the middle of November. This are positive times for our airport. If we would have a possibility to accept without any restrictions and they could park and be located here, I believe that such big carriers which are flying between South-Eastern Asia and Europe, could possibly will use our airport.

Do you think that this favorable situation is sustainable, regardless, of the presence of coalition forces here. Do you think that once they leave Kyrgyzstan, Manas airport, all those advantages will persist?

To say it openly, possibly, no. There are many such airports like us in our region, and there is a manager seating in each airport thinking about the same things that I do now. We were lucky that the coalition forces chose us. With the coming of the coalition forces we were able to increase the salary of our personnel practically 2 fold. We also have had the possibility to purchase and are purchasing a new technical equipment to serve the aircrafts. We have bought a special uniform for our people. All this was not done for about ten years. We do understand that once the coalition forces will leave Kyrgyzstan then we should maximally use today's situation in order to improve the possibilities of our airport. Therefore the most important task that I, as a manager see, is the renewing of the whole equipment here as well as the training of our personnel. Since spring we have started to actively send our people to international workshops. We are trying to update our staff with young people, with knowledge of foreign languages and expertise in different fields.

You were mentioning the fact that there is a lot of competition in the region in the terms of the airport becoming a hub for airlines, cargo and other air related companies. What do you think are the competitive advantages of Manas airport in comparison with other International airports in Almaty, Tashkent or other airports in the region?


You have correctly noted that we are located within the radius of 500 km. from Tashkent and 250 km from Almaty. Tashkent airport received a good heritage from USSR because during the soviet time it experienced international flights. Middle Asian aviation base was located there during the soviet period. In regards to Almaty - during the soviet time it was one of the airports where most of the big soviet aircrafts were flying to, even the well-known TU 144, analogue of Concord was flying to Almaty from Moscow. Unfortunately I must repeat once again that we were dead-end airport and our population in comparison with that Kazakhstan and Uzbekistan was much less, and of course with a limited potential of number of passengers. Only after the collapse of Soviet Union have the managers been involved in a real struggle for survival. They have nevertheless made a lot of achievements as I believe, and today what we could compete with out neighbors is that the reconstruction of our airport was conducted not so long ago. I think that even inside the airport this can be noted by being a normal traveler
, that in comparison with them our airport is even better, that is how it seems to me.

Could you give us a rough estimate on how much money does the Aiport generate for the nation? We have been here almost for 2 months and we read and heard from many sources about the presence of coalition forces here in Kyrgyzstan and there is an opinion that they are bringing good profit to the Kyrgyz economy and Manas airport, particularly.

I could not respond for the whole country, but concerning the airport I would say that actually it was a big plus for us - for today's financial possibilities of airport. Since 16 December at till the end of August we have got about 5 mln. dollars and rent payments close to 1 mln.dollars. This is what concerning airport Manas. And what I see good for us, even basing on my experience, as by communicating with them every day, as our work intends such daily communication with representative of all the countries represented here. We are obtaining the communication skills, because our philosophy of communication which was before it was quite different from that we can observe with western representatives.

We met Mr. Otorbaev, we discussed number of issues with him, he pointed out to us the areas he wanted to direct the influx of FDI into the Kyrgyz economy. One of them is the service sector. He spoke widely about the presence of airport Manas and possibilities of it becoming a hub for tourists, passengers and perhaps also for cargo. What is you vision as manager and president of the Aiport Manas.

It is difficult to respond to such a question objectively. I have my own vision and it seems for me to be different from the one of our country's leaders. Of course, we are striving to succed, we are building, and extending our platform in order for us to have possibilities for transiting big aircrafts and for them to land here and be served here. Today we have such a situation that aviation is developing so that new big aircrafts are constructed in a way they can fly from Singapore to London without making intermediate landings for additional fuelling.
Considering this developments within the industry we should focus on becoming a cargo hub over here, only in case that the whole region of Middle Asia develops more intensively, for example, rapid construction will be going on, or the oil will be mined in enormous quantity like in the neighboring Kazakhstan, where one need only to bring in a lot of equipment, but everything should be connected with the macroeconomic development of the region. Today we can count for maybe only tourists, we are a tourist country and for this our airport should look like normally, in order to meet properly the foreign passengers, so that they would feel comfortable and easy here and also would departure from our airport. I can se the task of airport in this. Because when they fly to Bishkek, they have got some problems. The situation here is so that it is difficult to change people. The main part of airport employees are working here for 20-30 years. And they were working in a soviet type of work and still continue to work this way. We could not just fire them and to force them to work the new way is also difficult. Me, for example, could not just stand next to each of them in order to control them. What we are doing today - we have purchased the system for hidden video observing. We are planning to install it until November and than I would have the possibility to monitor the situation, like if there would be a person caught for extorting let's say 10 euros from some German tourist. And than I believe something is going to change. Because even in comparison by Kyrgyzstan airport employees receive not the smallest salary.

What is the average salary here?

As of today, our main personnel receives about 3000 soms a month, some 17 dollars. We have a possibility and sufficient reserves, and we are considering them now, for increasing their salary. Nevertheless our people still continue to violate the rules, trying to earn 10, 20, 50 dollars anyway they can. I see the solution of this problem in the installation of hidden video cameras to monitor their activities. The psychology of our people is so that nothing will stop him/her if our legislation makes it so that it is difficult to fire a person, to punish him/her if are not able not catch him in the act. What can be done in cases of misconduct is that a person leaving abroad can write a letter that he was forced to pay so much by somebody. I didn't meet a person who would come here and indicate the person who forced him to pay. It seems to be a closed circle. I think as I saw in many other airports that the system of video monitoring is very much developed everywhere. It would be my merit if we will install this system, and when I will leave this position, the next manager would take this situation as normal. He will not have a headache with this problem.

What about attracting more carriers and more passengers to Kyrgyzstan. We have discussed it with Minister of transport and it seems to be very, very necessary not just for airport Manas and for tourism industry. What are you doing to attract more international carriers to pass by or fly to Manas airport?

This year we have created our own web-site and nowadays it is still weak, not to compare with yours. This site exists for only 2 months. But I think this is the way we are working . Concerning the air companies, I would again refer to Almaty and Tashkent, we offer them lower tariffs. And again everything resists on our country itself, as for example, the people from Europe will never come to have a vacation in Kyrgyzstan or very few of them would do. This is in general.

But don't you think, perhaps, that the first thing is to promote Kyrgyzstan, promote the tourism industry and then of course, the carriers will come?

I would think that it is not the task of the airport. Our task is to create good conditions, possibilities to fly, to be served here, so that the tourist by his arrival would have a pleasant experience, go to Bishkek, use a good hotel. Today it is a problem of the whole country and it is now covered by those officials, who are in charge for this issue - Mr. Otorbaev. I think it is very global promoter of this issue.

How would you describe the investment climate in Kyrgyzstan and what do you think about Mr. Otorbaev efforts to create a favorable and welcoming environment for investors in this country?

It seems to me that he has approached this issue very correctly. I would again refer to the mentality of our people, that on the lower levels, the middle officials, most of them do not understand all this. I think that it is a matter of time and nowadays most of the people start to understand this situation, that things need to be changed, to undertake something so that to improve the possibilities of Kyrgyzstan. Concerning the airport itself if we will put in order everything in our area, and it would be the same in other areas, like at Issyk-Kul in resorts, here in hotels, in taxis even, than I think the situation will be a bit different. I think there are still many resorts and hotels within the hands of Government. But I know as well that since this year they started to actively privatize the resorts, and already saw many private resorts this year at Issyk-Kul lake. The situation is becoming quite different, of course, not exactly what it is desired, but these are already serious, real steps.

You've been newly appointed as a general director of the airport, could you perhaps tell us about what previous experience you have brought to this position, and what are your challenges as the major decision maker for Airport Manas for the future?

I graduated University in Moscow, received Master degree there as well. Then I was involved in business there for a long time and returned to Kyrgyzstan some 5 years ago. While working in Kyrgyzstan I was conducted some private business. I have considerable experience and it seems to me that when thinking about the reasons of my being here, my work within the private business sphere determined my presence here. I hope that by coming from private business sector I will be able to apply all my maximum efforts and experience order to bring our airport in compliance with the standards of international airports.

Thank you very much.

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