IATA vice president: With right strategy Baku can capture flows between East, West - INTERVIEW

Against the backdrop of a redistribution of global air traffic and the growing importance of the Middle Corridor, Azerbaijan is gradually strengthening its position in the regional aviation market. Steady growth in passenger traffic, an expanding route network, and increased transit potential make Heydar Aliyev International Airport a key element of the country's transport and logistics architecture.

At the same time, market dynamics also reveal systemic challenges-limited terminal capacity, the need to modernize infrastructure, optimize airport fees, and implement digital and green solutions in line with international standards. Under these circumstances, the recommendations of relevant international organizations, primarily the International Air Transport Association (IATA), are particularly important for developing a balanced and cost-effective strategy.

In an interview with Report, IATA Regional Vice President for Europe Rafael Schwartzman discussed how the association assesses Baku's potential as a transit and logistics hub, what priorities should form the basis of Heydar Aliyev International Airport's long-term master plan, and what international standards and best practices should be considered when modernizing Azerbaijan's aviation infrastructure.

Report presents the interview:

- How does IATA evaluate Baku's potential as a future transit hub for passenger traffic and as a logistics center at the crossroads of Europe, Asia, and the Middle East?

- Baku's geographic position at the intersection of Europe, Asia, and the Middle East provides a strong foundation for developing as a transit hub and logistics center. This strategic location offers opportunities to capture flows between East and West, particularly in the context of growing demand for Middle Corridor connectivity and regional trade.

However, realizing this potential requires detailed studies and competitive benchmarking, including analysis of strategies adopted by other regional hubs. These studies should also consider scenario planning, as geopolitical uncertainties-such as the outcome of the Russia-Ukraine conflict-could significantly influence traffic flows and determine whether a hub-and-spoke model or point-to-point strategy is more viable for Azerbaijan.

Consultation with airlines and logistics operators is essential to ensure that hub development aligns with market needs.

- In your opinion, what role does Azerbaijan play in the development of the Europe–China air corridor? What are the prospects for further growth of air cargo traffic through Baku, given the growing interest in the Middle Corridor?

- Azerbaijan is strategically positioned along the Middle Corridor, an increasingly critical alternative for Europe–China trade. Baku's location and infrastructure offer a strong foundation to capture cargo traffic as global supply chains seek resilience and diversification. There are some interesting developments and opportunities, including Silk Way West's investment in a dedicated greenfield cargo airport in the Alat Free Economic Zone, equipped with modern facilities and capacity to handle up to 1.5 million tons annually by the mid-2020s. This project underscores the cargo potential of Baku when supported by a successful strategy.

There is idle capacity at Baku, and the development of Alat's specialized facilities may free up cargo capacity at Heydar Aliyev International Airport, creating opportunities for AZAL to expand its cargo offerings - or for Baku to attract other international cargo carriers. AZAL currently derives only around 1% of its revenue from cargo, far below industry norms. Expanding cargo operations represents a significant revenue opportunity.

- How important is the adoption of advanced analytical systems - such as demand forecasting, fleet management, and digital dispatching - for emerging aviation markets? Can IATA support Azerbaijan in this direction?

- The adoption of advanced analytical systems is critical for emerging aviation markets like Azerbaijan to enable data-driven decision-making and operational efficiency. These tools enable accurate demand forecasting to predict passenger and cargo trends, and to guide infrastructure investment and airline network planning or airport route planning. They also help optimize fleet management, improving aircraft utilization, maintenance planning, and cost control. In terms of digital dispatching, this can enhance on-time performance, resource allocation, and customer experience through real-time data integration.

IATA has already supported Azerbaijan in traffic forecasting for AZANS and network and fleet planning for AZAL. AZAL is currently developing its business plan, and we hope it incorporates global best practices and expert guidance to adopt these advanced tools effectively.

- What key elements, in IATA's view, should be included in the master plan for the development of Heydar Aliyev International Airport over the next 10-20 years? Should the focus be on infrastructure expansion, digital transformation, green technologies, enhanced connectivity, or the development of a hub model?

- The master plan should follow IATA's Airport Development Reference Manual (ADRM), Edition 12, which sets out globally recognized best practices for airport planning and design. A critical priority is addressing the terminal building as the main capacity bottleneck. Future expansions should focus on functionality and operational efficiency, ensuring smooth passenger flows and scalability - rather than prioritizing aesthetics over usability. This approach is essential because design choices directly influence airport charges, which affect competitiveness.

Currently, Baku Airport has high charges that can limit the airport's ability to attract new carriers, develop low-cost operations, and strengthen its position as a regional hub. Therefore, cost-efficiency must be a guiding principle in all planning decisions, supported by a business case and return for airport users paying for investments.

In addition, the master plan should integrate digital transformation and green technologies to support sustainability goals and the industry's net-zero CO2 by 2050 commitment. Implemented correctly, these measures will enhance efficiency, reduce costs, and improve customer experience.

Finally, as a best practice, an independent, neutral review of the master plan developed by AZAL should be conducted, and consultation with airlines is key to successful implementation. IATA would welcome the opportunity to participate in such a review and provide technical expertise to ensure the plan aligns with international standards and industry expectations.

- How does IATA assess the current capacity of Heydar Aliyev International Airport? Does it meet the projected growth in passenger traffic and the expected long-term demand in the regional aviation market?

- According to AZAL's own studies, terminal constraints are expected once annual traffic reaches 7 million passengers - a threshold already surpassed in 2024, with 2025 traffic projected to exceed this level. This confirms that the terminal building is the primary capacity bottleneck.

To address these challenges, IATA recommends several actions aligned with global best practices. First, apply IATA's Airport Development Reference Manual (ADRM, Edition 12) as a planning framework to ensure cost-efficient, modular solutions and avoid overbuilding. Second, enhance current terminal capacity by reviewing passenger processing flows, optimizing layouts, and introducing process improvements before committing to major investments. Third, conduct a level of service assessment to identify detailed bottlenecks and ensure service quality is maintained. This is critical to preserving the passenger experience and sustaining the airport's reputation. Finally, plan modular expansions aligned with traffic forecasts to minimize financial risk and avoid excessive airport charges, which could harm competitiveness.

These steps will help ensure that Heydar Aliyev International Airport continues to deliver a high-quality passenger experience while preparing for sustainable growth. IATA would welcome the opportunity to collaborate with AZAL and stakeholders in conducting these assessments and supporting the development of a cost-efficient, future-ready capacity plan.

- Which international standards and best practices of IATA would you recommend for the modernization of terminals, aprons, runways, and the navigation infrastructure of Azerbaijani airports?

- Modernization should be guided by globally recognized standards and certifications to ensure safety, efficiency, and sustainability. In particular, we urge airlines to implement IOSA, the IATA Operational Safety Audit, and ground handlers to implement ISAGO, the IATA Safety Audit for Ground Operations. In addition, we would urge compliance with ICAO Standards, especially Annex 14 – Aerodromes, which sets requirements for runway/taxiway design, obstacle clearance, and safety areas.

We urge regulators to adopt the Worldwide Airport Slot Guidelines (WASG) to ensure fairness and transparency in slot allocation, optimizing infrastructure use, and enabling airline competition. And for Air Traffic Management, we would suggest that Azerbaijan consider upgrading to Performance-Based Navigation (PBN) and adopt Airport Collaborative Decision Making (A-CDM) to enhance predictability, reduce delays, and optimize safety.

By integrating these standards and certifications-and prioritizing functional planning followed by architectural design-Azerbaijan can ensure its airports are safe, sustainable, operationally effective, and aligned with international best practices.

- Is IATA considering Azerbaijan as a venue for regional conferences, seminars, or industry summits? Could Baku serve as a potential host for future Aviation Day, Cargo Day, or Safety/Operations Forum events?

- Azerbaijan has already demonstrated its capability to host major aviation events, such as the Aviation Energy Forum (AEF) held in Baku in 2025, which showcased the country's commitment to aviation development. Building on this success, there is certainly the possibility for Azerbaijan to host additional high-profile events, including the World Digital Symposium (WDS), the World Financial Symposium (WFS), the World Passenger Symposium (WPS), and the Slot Conference.

- Does IATA plan to expand its involvement in training and capacity-building programs for aviation personnel in Azerbaijan? Which skills and competencies will be most in demand in the future?

- Yes, IATA plans to continue and expand its support for training and capacity-building in Azerbaijan. Building a skilled workforce is essential for sustainable growth, and future priorities include safety and risk management, digitalization and data analytics, ground operations, and sustainability, especially competencies related to decarbonization strategies, fuel efficiency, and environmental compliance to meet Net Zero by 2050 goals. A critical challenge today is the shortage of pilots and skilled aviation professionals, which AZAL faces and which is common across the region, where countries compete for talent. Establishing a pilot training and licensing academy to address this gap would be a strategic step to secure long-term workforce sustainability.