The Cape Town Convention and Aviation Financing in Uzbekistan: Legal Framework and Practical Implementation

1. Economic and Legal Preconditions for the Application of the Cape Town Convention in Uzbekistan

The aviation sector of the Republic of Uzbekistan is currently undergoing an active phase of reform, accompanied by the modernization of the aircraft fleet, expansion of the route network, and deeper integration into the international air transport market. These developments have led to the increasing importance of external financing and leasing mechanisms in the development of the national aviation sector.

The scale of this modernization is confirmed by specific investment decisions made by leading Uzbek air carriers. In particular, Uzbekistan Airways has entered into a firm contract with Boeing for the delivery of 14 wide-body Boeing 787-9 Dreamliner aircraft, with an additional option for eight more aircraft of the same type. Deliveries are scheduled to commence in 2031 and form part of a long-term fleet modernization program aimed at expanding the airline’s long-haul operations. This transaction represents the largest single aircraft acquisition in the history of the national carrier and is intended to strengthen transcontinental routes, including services to North America, Europe, and the Asia-Pacific region.

At the same time, a program for the renewal of the medium-haul fleet is being implemented. Uzbekistan Airways has signed a letter of intent with ICBC Aviation Leasing for the lease of two Airbus A321neo aircraft, with delivery expected in 2027–2028. By 2028, the airline plans to increase its fleet of this aircraft type to 15 units. The expansion of cooperation with international leasing companies reflects the carrier’s strategic orientation toward the use of international aviation finance mechanisms.

A similar trend can be observed among private carriers. Qanot Sharq has concluded an agreement with Air Lease Corporation for the lease of five Airbus A321neo aircraft (including the XLR and LR variants), with deliveries scheduled for 2026–2027. This acquisition is expected to support the expansion of the airline’s route network to Europe, the Middle East, and Asia. Centrum Air (part of Centrum Holding) has also entered into lease agreements with AerCap for the delivery of two Airbus A321neo aircraft in 2027, further demonstrating the involvement of leading global leasing companies in the development of Uzbekistan’s aviation market.

GRATA International Uzbekistan has also been actively involved in the expansion of the national aircraft fleet in recent years, advising foreign lessors, including Avolon, CALC, SMBC Aviation Capital Limited, Nordic Aviation Capital, and Titan Aircraft Leasing, on matters of local law, including the structuring and execution of aircraft lease agreements and related financing transactions. Since 2023, approximately 25 aircraft have been delivered to Uzbek airlines under lease arrangements, including cargo and passenger Boeing aircraft, various Airbus A320 and A321 configurations, ATR 72-600 aircraft, and other types.

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Authors:

Atabek Sharipov, Partner

Shakhzod Alimkhodjaev, Senior Associate

Makhmudjon Maksudov, Junior Associate