On a frosty December morning, a SCAT Airlines Boeing is on final approach to Aktobe Airport. All ground services are on standby, and from afar a fuel truck bearing the KMG-Aero logo moves to its designated position. While passengers disembark from the aircraft, the pilot in the cockpit calculates the required fuel volume. Clearance for fueling is finally granted, the truck pulls up to the aircraft. — and in less than half an hour, the aircraft is ready to board new passengers and continue its route.
From Multi-Million Losses to Multi-Million Profits
Aktobe International Airport is named after the legendary Kazakh sniper Aliya Moldagulova and serves around two dozen flights daily, including scheduled, transit, charter, and cargo services. Several companies provide aircraft fueling at the airport, one of them being KazMunayGas-Aero LLP (KMG-Aero), which operates in a competitive environment. Airlines are free to choose based on price, quality, and service — and increasingly, that choice is made in favor of the subsidiary of Kazakhstan’s national oil company, KazMunayGas.
“Why doesn’t the airport operate its own fuel business, given that it is a high-margin sector?” I ask Dastan Maliyev, CEO of Aliya Moldagulova International Airport JSC.
“For us, this is a non-core business,” Mr. Maliyev explains. “Our priority is to improve service quality for airlines and passengers, not to trade aviation fuel. Building a new fuel depot and acquiring fueling vehicles require significant investments that we simply cannot afford.”
After gaining independence, regional airports — once part of the unified Aeroflot system during the Soviet era — entered a free-market environment. Some were privatized, others transferred to local authorities. High aviation fuel prices, a reduced route network, and the termination of subsidies for regional flights placed most of them under severe financial pressure. For example, in 2020 the airport, owned by the Aktobe Regional Department of Finance, recorded a loss of 800 million tenge — a typical structurally loss-making enterprise at the time.
“This year, however, we are expecting a profit of around 300 million tenge,” says Mr. Maliyev. “For the first time in our history, we served our one-millionth passenger. And notably, this was achieved without selling aviation fuel — solely through revenues from airport services. At the same time, we also earn from fueling through royalties charged to service providers.”
More than two years ago, when fueling services were outsourced, the airport did not charge any fees during the first year, inviting companies to enter the market and stimulate competition — the more suppliers, the lower the fuel prices for airlines. Royalties were introduced only in the second year. The principle is straightforward: the greater the competition, the lower the royalty, which is uniform for all providers. This approach eliminates any possibility of monopolization.
“This policy delivers tangible results,” Mr. Maliyev notes. “While some airports experience aviation fuel shortages, Aktobe always has fuel available — from different suppliers and at different prices.”
Only recently has the government decided to relieve airports of non-core functions such as fuel trading. Aktobe implemented this model several years ago — and did not go bankrupt. A similar approach is applied in Turkistan, where the airport also operates profitably without engaging in the fuel business.
“We are doing well,” Mr. Maliyev adds. “We raise salaries where possible, invest around 300–400 million tenge annually in runway maintenance, and regularly upgrade our ground support equipment.” He emphasizes that cooperation with KMG-Aero is also beneficial because the company actively supports route development. “They invest here and need returns on that investment, so they are equally motivated to attract new carriers.”
KMG-Aero as a Strategic Partner
KMG-Aero is making long-term investments in Aktobe Airport, viewing it as a strategic partner. The first modern fueling vehicle was only the beginning. On December 22 this year, a second — even more advanced — custom-built vehicle arrived in Aktobe, with a third planned for acquisition.
Even when airlines purchase fuel from another supplier offering, for example, prices that are temporarily lower, they often choose KMG-Aero to perform the into plane service. This is due to the company’s modern filtration systems, certified metering equipment, and guaranteed fuel quality.
KMG-Aero is also commencing construction of a fueling complex at the airport. The feasibility study is nearing completion, with estimated investments of approximately KZT 5 billion. A land plot has been allocated, topographic surveys completed, and engineering and geological studies finalized to assess soil conditions and groundwater levels, ensuring the future facilities are safe and durable.
Within the next few years, the new fueling complex will be commissioned, featuring a 600-cubic-meter apron fuel depot. The facility will support rapid aircraft fueling with both CIS-standard fuels TS-1 and RT, as well as internationally required Jet A-1. This apron depot will complement the main project infrastructure — a tank farm with total storage capacity exceeding 20,200 cubic meters, a modern rail loading and unloading terminal, and a digital dispatch center.
The tank farm will store not only aviation fuel but also other petroleum products supplied by KMG-Aero in its role as the Unified Operator to the Armed Forces of Kazakhstan, law enforcement agencies, and emergency services: summer and winter diesel fuel, as well as gasoline.
The fuel complex will also be capable of storing and supplying environmentally friendly Sustainable Aviation Fuel (SAF), planned for production at a facility in the Kostanay region. The use of Jet A-1 and SAF will support Kazakhstan’s carbon neutrality goals and enable fueling of transit flights to and from the European Union, where SAF blending mandates are already in force.
From a Regional Airport to an Aviation Hub
Aktobe Airport is thus consistently implementing the task set by President Kassym-Jomart Tokayev in January 2025 during an expanded government meeting: the creation of several large, modern aviation hubs in Kazakhstan.
“To achieve this, we must establish a holistic ecosystem encompassing cargo and passenger terminals, logistics centers, and advanced services,” the Head of State emphasized.
In addition to KMG-Aero’s investments in aircraft fueling infrastructure, the Turkish company S Sistem Lojistik has begun constructing a new temporary storage warehouse at the airport using its own funds. This is not merely a financial investor, but a major industry player operating more than 15 such Temporary Storage Warehouses across Turkey and maintaining partnerships with numerous Turkish and European cargo airlines. They are entering Aktobe Airport not just with capital, but also with future clients, contracts, and cargo volumes for storage and transportation.
The new temporary storage warehouse will be certified to handle all types of cargo, including dangerous and explosive goods, making it unique in the region and providing a significant competitive advantage. It is expected to be actively used by oil and gas companies operating not only in Aktobe but also in Atyrau and Mangystau regions.
A key competitive advantage of the Aktobe aviation hub in its development into a major aviation hub is its strategic location. Situated at the heart of Kazakhstan’s industrially developed western region, the airport is located in close proximity to the Russian cities of Orsk and Orenburg. This enables efficient handling of inbound import flows for Russian consumers and provides manufacturers with a reliable export route to international markets.
Last summer, Russian citizens accounted for a significant share of passengers traveling through Aktobe. For residents of Orsk (160 km away) and Orenburg (270 km away), departing from Aktobe proved far more convenient than flying from Moscow, located approximately 1,200 km away. The airport even opened a currency exchange office specifically to serve this passenger segment.
“In three to four years, you will clearly see the results of these cooperation projects — with KMG-Aero and with our Turkish partner on the new temporary storage warehouse,” concludes Dastan Maliнev, CEO of Aliнa Moldagulova International Airport JSC. “A powerful synergy will emerge: these projects will complement each other and jointly drive the airport’s development.” This growth will benefit the people of Aktobe as well, creating new jobs, increasing tax revenues, and improving overall quality of life in the region.
Growth in Volumes and Dividends
KMG-Aero was established in 2014 as a subsidiary of KazMunayGas to operate in the fuel market. At the same time, it was entrusted with the role of Unified Operator for the supply of gasoline, diesel fuel, fuel oil, and aviation fuel to the Armed Forces of Kazakhstan, the Border Service of the National Security Committee, the National Guard, civil protection authorities, and the state material reserve agency.
In its early years, the company focused primarily on fulfilling its Unified Operator responsibilities. Since 2022, following a change in management, it has actively expanded its commercial operations. While in 2023 the company’s volume of into plane fueling amounted to approximately 7.3 thousand tons of jet fuel, in January–November 2025 alone it increased more than sevenfold, exceeding 50 thousand tons. Today, KMG-Aero holds a 16% market share and, importantly, pays dividends to its sole shareholder — KazMunayGas. This year, dividend payments are expected to reach KZT 5.5 billion.
The company has contracts for «into plane service» with numerous domestic and international airlines, including airBaltic, Georgian Airlines, Red Sea Airlines, Silkway West Airlines, Fly Meta Group, and others.
“Our goal is to transform into an active player in the fuel market by providing airlines with top-tier services, while contributing to the national objective of establishing several key aviation hubs in Kazakhstan,” says Ildar Shamsutdinov, General Director of KazMunayGas-Aero LLP. “This will unlock the country’s transit potential, diversify the economy, create new jobs, and generate additional budget revenues for Kazakhstan.”
