The government has scrapped plans to establish its own airline: Air KG has been liquidated

The state-owned enterprise Air KG, operating under the Presidential Administration, has officially ceased operations. According to the Ministry of Justice registry, the termination was registered on 29 July this year, less than a year after the company was established.

The Air KG project was initially presented as a step towards the creation of a national state-owned airline. In December 2023, the MAM Group (now Airports of Kyrgyzstan), the operator of all airports in the country, transferred its 100% stake in Air KG to the Presidential Administration.

As Kyrgyzstan Airports commented to Akchabar, an official agreement was signed between the state and the company to transfer the stake and, along with it, all of the airline's assets.

‘The company was transferred in December 2023. Its assets consisted solely of aircraft serving the country's top officials. The airline had no other assets, such as buildings or structures. We have no information about its future transformation,’ the company said.

According to the register, the company had four aircraft on its balance sheet. One of them is brand new — a 2021 Beechcraft King Air 360.

In November 2024, the cabinet of ministers, then headed by Akylbek Zhaparov, decided to create a new state-owned enterprise, Air KG, on the basis of the transferred company. The stated aim of the reform was to increase efficiency, strengthen control and optimise costs. The state-owned enterprise was founded by the Presidential Administration.

However, by mid-2025, the project had effectively been shut down. Thus, the state abandoned its plans to create its own airline, ending its attempt to institutionally relaunch Air KG.

The reasons for the liquidation of the state-owned enterprise were not disclosed.