Page 20 - AAA SEPTEMBER - OCTOBER 2015 Online Magazine

AST
TURE AIR
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FEATURE AIR ASTANA
FEA

A True Success Story In 2016, Air Astana plans to start
operations to Tehran in Iran and
Ulan Bator in Mongolia
Air Astana has exceeded expectations in terms of growth, quality and reputation
By Jay Menon

WhEN PETER FOSTER DECIDED TO LEAVE and continued economic and political The airline continues to battle
the Chief Executive Officer’s post at the headwinds in Ukraine and Russia, two the currency devaluation.The Kazakh
Royal Brunei Airlines to be the President important markets for the airline. The government decided to de-peg the tenge
of Air Astana in 2005, there were few country’s currency tenge was initially to the USD in mid Aug-2015, introducing a
chuckles and raised eyebrows among devalued by almost 20% in February 2014, new free float policy. The value of the tenge
his friends and former colleagues. “No resulting in an immediate impact to Air immediately dropped by another 25%,
one had really heard of Kazakhstan and Astana. The flag carrier quickly responded leading to a more challenging short-term
certainly no one had heard of Air Astana,” by slowing capacity growth. outlook for Air Astana. The tenge accounts
Foster says. Almost a decade on, they look “Last year’s devaluation was a major for about two thirds of the Air Astana’s
enviously upon Foster’s success story as challenge for a company with the bulk revenues but only one third of its costs.
the dynamic and growing flagship airline of its revenues in tenge and expenses The initial devaluation has already led
of Kazakhstan is bringing the world to in dollars, but we rose to the challenge, to much smaller net profits for Air Astana
Central Asia. delivering impressive operational results but the airline has been able to continue
“After nearly 10 years in this job, I can and record operational profits while growing operating profits. It is confident it
say that Air Astana has proved to be a true maintaining our robust safety record,” will continue to stay profitable despite the
Kazakhstani success story,” says Foster, Foster says with pride. latest devaluation, enabling it to extend its
who was conferred with the Order of the In 2014 the company produced a net profit streak.
British Empire for services to British profit of US$ 19.5 million, on revenues “We anticipate continued challenges in
aviation in Kazakhstan in the New Year of US$ 934.8 million, respectively 62% our domestic home market and expanded
Honours list this year. and 3% lower than 2013. Setting aside home market in Central Asia and the CIS
the effect of devaluation, the company in 2015. Russia and Ukraine are likely
Beating the Odds recorded an operating profit of US$ to deliver little or no growth. However,
In 2014, the airline delivered a record 98.5 million, 36 % higher than 2013 and I am confident we have the right people,
operating profit despite a currency comfortably the highest in the airline’s13- organisation and technology in place to
devaluation in the domestic market year history. overcome these challenges,” he says.
20 ASIAN AIRLINES & AIRPORTS SEPTEMBER / OCTOBER 2015 WWW.ASIANAIRLINES-AIRPORTS.COM