Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

Kazakh airline says business is booming as Russia loses traffic

Published Mar 29, 2023 09:05AM ET Updated Mar 29, 2023 09:36AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Air Astana planes are seen on the tarmac of Almaty International Airport, Kazakhstan, May 15, 2017. REUTERS/Shamil Zhumatov
 
BAESF
+0.04%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

ALMATY (Reuters) - Kazakhstan's flagship airline, Air Astana, is speeding up its expansion plans to take advantage of a drop in air traffic via Russia and the reopening of China, chief executive Peter Foster told Reuters.

Many global airlines stopped flights to Russia after it invaded Ukraine last year. As a result, Moscow has lost its status as a hub for flights between Europe and Asia, allowing its southern neighbour Kazakhstan to boost its market share.

"Prior to the start of the war in Ukraine, a lot of traffic in general, going in the western direction, whether that was to Europe or to the U.S., was traveling from this region via the Russian Federation," Foster said in an interview.

"Obviously, that is no longer the case. And so what has happened is there has been a shift of gravity and we are extremely well placed to take advantage of that shift."

Air Astana, part-owned by Britain's BAE Systems (OTC:BAESF), posted a record profit of $78.4 million last year as its traffic grew 11% to 7.4 million passengers, even though the company has also ceased flights to Russia.

The company plans to grow its fleet to 50 aircraft by the end of this year from the current 44 aircraft, Foster said, and is accelerating expansion plans for the coming years.

"We are making more orders for 2024-27. I think it's common knowledge now that the 787 Dreamliner will arrive in 2025. So we will continue to expand the fleet both with those aircraft and with more Airbus 320 family aircraft," he said.

"We see very big opportunities in China, as China has opened again, following COVID, India is doing well.., Pakistan is a growth market."

Foster said Air Astana was able to quickly resolve supply chain issues caused by Western sanctions against Moscow, an issue faced by many businesses in Central Asia which imported Western products and had them transited via Russia.

"Supply chains have a way of finding alternative methods," Foster said. "And that's been resolved, we have no problem with accessing spare parts,"

Kazakhstan's sovereign wealth fund, which owns a 51% stake in Air Astana, plans to list the company publicly next year.

Kazakh airline says business is booming as Russia loses traffic
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email