Sovico Group Acquires 51% Stake in Kazakhstan’s Qazaq Air

Vietnam’s Sovico Group, through its subsidiary Central Asia Aviation Holdings Limited, has partnered with Kazasia Holdings Limited to acquire a 51% stake in Kazakhstan’s Qazaq Air. The deal, finalized on December 24, 2024, with Samruk-Kazyna JSC, the Kazakh sovereign wealth fund, went into effect three days later.

The acquisition aims to enhance Kazakhstan’s aviation sector by boosting competition, expanding international flight routes, creating jobs, and improving service quality. While the transaction value remains undisclosed, the government had earlier anticipated proceeds of KZT2 billion (USD4.2 million).

Sovico Group, known for founding VietJetAir and serving as a major shareholder, committed to repaying KZT38.4 billion (USD74.2 million) of Qazaq Air’s debt by 2044 as part of the agreement. Plans also include adding 20 Boeing 737 MAX or Airbus A321 family aircraft to Qazaq Air’s fleet in the coming years. Sovico aims to leverage VietJet’s franchise model and technical expertise to strengthen Qazaq Air’s competitiveness.

Qazaq Air, which operates five DHC-8-Q400s and serves 16 destinations in Kazakhstan and Russia, will maintain compliance with local foreign ownership rules through Kazasia Holdings.

Sovico Group Chairman Nguyen Thanh Hung emphasized the group’s commitment to developing Kazakhstan’s aviation industry, stating, “We are proud to establish a strong presence and provide resources to help Qazaq Air achieve its strategic goals.”

The transaction will be completed once all conditions of the sale are met, marking a significant milestone in Kazakhstan’s aviation privatization efforts.

Related News: https://airguide.info/category/air-travel-business/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com