Page 21 - AAA JANUARY - FEBRUARY 2018 Online Magazine
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The cabin features larger over-     withdraw because of a paucity of  expect this to accelerate as the
        head-bin capacity and a new         slots. Having completed 13 years  economy continues to diversify.
        mood-lighting  system  with  LED    of service in India, Air Astana plans  However international passen-
        technology.
                                            to increase its three-times-weekly  ger growth is most encouraging,
        Other New Aircraft                  service between Astana and New  particularly network business.
               oster explains that the      Delhi to a daily flight, followed by  Astana EXPO 2017, further easing
               company plans to take        service to Mumbai in 2019.         of visa restrictions, the new ter-
               delivery of three Boeing 787   However, securing slots at the  minal at Nursultan Nazarbayev
       FDreamliners in the early part       two capacity constrained airports  International Airport at Astana,
        of the next decade. Last year, Air   presents a major challenge, says  and continued positive develop-
        Astana signed a long-term lease     Foster. “Slots have started to fea-  ments within the airline are all
        agreement with AerCap for five      ture on several airlines’ balance  combining to set up strong traffic
        Embraer E190-E2s, which will com-
        mence delivery to the airline during   sheets as assets. While they are  recovery,” Foster opines.
        the  final  quarter  of  2018.  “The   not a tradeable commodity, they  “Cost pressure, driven by higher
        acquisition of the E2 is the logical   are becoming so.”               fuel prices in Kazakhstan, has
        replacement of the E190, which we   The  airline’s  cost  per  available  increased. However, the airline’s
        have been successfully operating    seat kilometer remains below  unit cost remains very competi-
        since 2011. The E190 has enabled    five cents, making it one of the  tive and enables us to increase
        us to open up smaller markets in
        southern Russia, the Caucasus,      world’s lowest cost full-service  our share of long-haul major
        and Central Asia including smaller   airlines. The Kazakh flag carrier  market business. This is helped
        domestic routes. These fuel-effi-   is now looking to ramp up its  by increased awareness in foreign
        cient aircraft, when combined with   overall traffic to 9 million passen-  markets of the quality of our prod-
        the Airbus 320neo family aircraft of   gers within the next 10 years. In  uct. We have yet again won the
        which we continue to take delivery,   the first half of 2017, the airline  Skytrax Award for ‘Best Airline,
        will drive continued improvements
        in efficiency and product quality.”     carried 1,894,391 passengers of  Central Asia and India’,”
        As domestic and regional compe-     which 1,007,413 were domestic  Foster adds.
        tition grows, we estimate the E2    passengers and 886,978 were  Air Astana became the first carrier
        will deliver up to 15 per cent seat   international passengers. Overall  from Russia, the Commonwealth
        cost savings, which will enable us   Passenger traffic increased by 12  of Independent States (the
        to increase capacity and market     per cent for the period. While pas-  CIS) and Eastern Europe to be
        share on these routes and maintain
        our position as the region’s leading   senger growth on domestic routes  awarded the prestigious 4-Star
        airline. We are delighted to have   was a relatively modest four per  rating by Skytrax at its World
        concluded the lease agreements      cent,  international  traffic  grew  Airline Awards 2012 and was also
        with AerCap, with whom we have      by 22 per cent, driven to a large  named ‘The Best Airline in Central
        been working closely for many       extent by network traffic transit-  Asia and India’ that year. Both
        years,” Foster says.
                                            ing through its Astana and Almaty  achievements were repeated in

        Expansion Plans                     hubs, which grew by 62 per cent.  2013, 2014, 2015, 2016 and 2017.
                                            Cargo uplift increased by 22 per  “During these past few years, we
        Plans for expansion to Asia Pacific   cent for the same period.        have managed to create a very
        include more flights to Bangkok,                                       good product that is appreciated
        Seoul, Chengdu, and Xian by         Advantageous Location              by our clients,” says Foster. He
        2020 and to Hong Kong in 2018.      Located  at  the  crossroads  of   confirms that the airline, 49 per
        Foster expects to sign a code-      Asia and Europe, Kazakhstan        cent owned by BAE Systems and
        share with Cathay Pacific soon.      stands geographically well posi-  51 per cent by Kazakh sovereign
        “We are exploring the possibility   tioned  to  attract  transit  traffic,   wealth fund Samruk-Kazyna, will
        to fly to New York…If we decide     which  accounts  for  a  growing   release its planned initial public
        to, we will be using the new 787,”   proportion of Air Astana’s reve-  offering at the stock exchanges
        he says. The airline had planned    nues. “Kazakhstan’s economy is     of Astana and London in October
        to add two more frequencies to      delivering modest growth after     2018.
        Beijing, but had to
                                            two very difficult years, and we



        ASIAN AIRLINES & AEROSPACE                                                             January/February 2018 | 21
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