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Air Astana SWOT & PESTLE Anaylis

ID : 52847153| Jan 2021| 14 pages

COMPANY PROFILE -Air Astana

Business Sector :Aviation

Operating Geography :Kazakhstan, Asia, Global

About Air Astana :

Air Astana is the flag carrier of Kazakhstan headquartered in Almaty. The airline operates over 64 routes from Almaty International Airport and Nursultan Nazarbayev International Airport. It is a coalition between Kazakhstan's sovereign wealth fund Samruk Kazyna and BAE Systems PLC. It commenced commercial flights on 15, May 2002. In 2001, BAE System decided to take part in the proposed start-up at the request of Kazakhstan's head of state, President Nursultan Nazarbayev, to facilitate an air radar contract negotiating with the Government of Kazakhstan. Now, the Air Astana airline's fleet is the youngest in Europe and comprises 30 western made aircraft. In 2020, Air Astana harbored plans of expanding its fleet up to 43. The company's 64 routes cover most of major cities in Kazakhstan and also a number of neighboring Central Asian and Russian cities, to support its image for high standards of services and air safety compliance in the region's growing air transport markets, which the manager refers to as “Extended home market strategy”. The European services are associated with Air Astana's extensive domestic services as well as regional services in South Russia, Central Asia and China with a non-stop flight to Tehran from Almaty. The company offers 2 class services including Business and Economy with Economy Sleeper on Boeing 757 fleet. The company has 500 pilots on board with a cabin crew team consisting of 1100 flight attendants. Air Astana has won Skytrax World awards for 8 consecutive years.
Air Astana's Unique Selling Proposition or USP lies in it being recognized as the Best Airline in Central Asia and India. The company aims to build themselves as one of the finest airlines in the world by executing highest safety standard, by offering highest standard of customer services and to be a socially responsible organization.

Air Astana Revenue :


$ 898.7 million– for the year 2019 (y-o-y growth of 6.87%)
$ 840.9 million– for the year 2018

Competitive Analysis of Air Astana

SWOT
PESTLE
The SWOT analysis for Air Astana is presented below in a table followed by the detailed analysis report.
StrengthsWeaknesses
1. One of the best carriers in the Central Asia region
2. Strong reputation for excellent service
3. Strong financial growth both from domestic and international operations
4. Transformational launch subsidiary, regions low-cost carrier
5. Serving fast growing market through strong operating model
1. Increase in network frequency and connectivity needed to stimulate growth
2. Disruption in business due to pandemic has resulted in liquidity loss
OpportunitiesThreats
1. Cooperation with governments to improve national aviation strategies in growing market
2. Venturing into cargo division in hours of strong increase in the demand
1. Volatile price of jet fuel is a concern for the firm.
2. Purchasing grounded Boeing 737 MAX can be one of the worst decisions
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Detailed SWOT Analysis of Air Astana

Strength

1. One of the best carriers in the Central Asia region: Air Astana is the flag cattier of Kazakhstan having main hub in Almaty International Airport and Nursultan Nazarbayev International Airport. It had started operations in May 2002 and is a joint venture between BAE System PLC and Sovereign Wealth Fund of Kazakhstan. It operates three class types Economy, Business and Economy Sleeper. Skytrax is an airline and airport rating consultancy firm. Skytrax has been rating Air Astana 4 star since 2010 and Best Airline in Central Asia since 2013. This has been a trend for Air Astana because it offers world class service even to its economy class travelers. From basic amenity kit, starters, meals to inflight entertainment, everything is just spot on.

2. Strong reputation for excellent service: The mission statement of Air Astana is “Absolute commitment to safety and service delivery” and the management and employees have focused on its principle. Launched in 2002, flagship carrier of Kazakhstan has built a reputation of friendly staff behavior, new and well-maintained planes and world class service. Consumer aviation website Skytrax has been rating Air Astana 4/5 since last few years and naming it the best airlines in Central Asia. Customer reviews on portals like tripadvisor.com, makemytip.com, etc. depicts the story of excellent service leading to strong reputation.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.

Weakness

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Opportunity

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Threats

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Major Competitors :

Major Brands :

  • Fly Arystan
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TABLE OF CONTENTS
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References used in Air Astana SWOT & PESTLE Analysis Report

1, One of the best airlines in the world is one you've probably never heard of - here's what it's like to fly Air Astana - https://www.businessinsider.in/personal-finance/one-of-the-best-airlines-in-the-world-is-one-youve-probably-never-heard-of-heres-what-its-like-to-fly-air-astana/articleshow/64725549.cms
2. Annual Report 2019 - https://airastana.com/Portals/2/About%20Us/Annual%20Reports/20160_AirAstana_AR19_ENGLISH%20Web.pdf?ver=2020-06-30-103047-260
3. Air Astana enhances its international network and expands fleet - https://airastana.com/kaz/en-us/Biz-turaly/Jalpy-aqparat/Air-Astana-jangalyqtary/air-astana-enhances-its-international-network-and-expands-fleet
4. Central Asian aviation industry faces up to new challenges - http://www.rusaviainsider.com/central-asian-aviation-faces-new-challenges/
5. Jet Fuel Price Monitor - https://www.iata.org/en/publications/economics/fuel-monitor/
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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In-text: (SWOT & PESTLE.com, 2021)

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Air Astana SWOT and PESTLE analysis has been conducted by Akshay Mohan and reviewed by senior analysts from Barakaat Consulting.

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