Devaluation of oil-rich Kazakhstan’s currency, tenge, twice in two years following a crash in oil prices has led national carrier Air Astana to focus its expansion on neighboring countries such as China and the Ukraine, and less on the saturated domestic market. But even as it fine-tunes its growth strategy, the carrier is eager to retain its solid #PaxEx credentials.
President and CEO Peter Foster, who has been with the airline for 11 years, told RGN in a recent interview that he is accustomed to fluctuations in oil prices and will not be deterred by the downturn.
While Air Astana’s “cost base has never been lower”, Foster acknowledged that the short-term challenge is to manage recession. “We face a revenue challenge.” This is because Kazakhstan’s population of 17 million people is catered to by multiple airlines, which are targeting the same market with cutthroat fares, and in turn threatening yields.------Read more on RunwayGirlNetwork