MIAT - Mongolian Airlines (OM, Ulaanbaatar) has opened the door to international cooperation amid a general downturn in the Mongolian economy. Requesting proposals from interested parties, the Mongolian national carrier said it had already crafted its own mid-term business plan covering the period 2015 to 2017.
"Therefore, MIAT Mongolian Airline is cordially inviting all interested parties to support and participate in the development of the mid-term Business Plan utilizing its own financial resources," it said.
On September 3, Aeroflot (SU, Moscow Sheremetyevo) signed a Memorandum of Understanding with MIAT pledging its cooperation and support for the airline following talks between Russia's Vladimir Putin and his Mongolian counterpart, Tsakhiagiin Elbegdorj. It is unknown as to what extent the cooperation will encompass.
Private operator Eznis Airways (MG, Ulaanbaatar) was forced to indefinitely suspend its own operations in May this year also citing harsh market conditions.
Ratings agency Fitch warned in July this year that one of Mongolia's most significant challenges in raising economic activity (and improving external finances) has been the slowdown in Foreign Direct Investment (FDI) since the end of construction for the first phase of the multi-billion dollar Oyu Tolgoi copper mine. However, the resumption of works under the project's second phase is expected to provide a significant boost to foreign-capital inflows and broader economic activity.
