Air Astana JSC (AIRA · LSE)
Flying the Crossroads of Eurasia
Kazakhstan's biggest airline group runs two brands: a full-service carrier and a low-cost one. That gives it a seat to sell at almost any price point, from a country within seven hours' flight of roughly half the world's population.
Bull case for Air Astana JSC
Two brands cover both ends of the fare market
A full-service airline and a low-cost airline let the group chase every kind of traveller.
Perfectly situated between China, India and Europe
Kazakhstan's position lets the group sell connecting flights few rivals can match.
In-house engineering and training cut outside costs
Doing its own heavy maintenance and pilot training keeps unit costs low and schedules under control.
Bear case for Air Astana JSC
Engine defects keep aircraft on the ground
Grounded jets shrink flying capacity while the costs of owning them carry on regardless.
Costs per seat can outgrow fares per seat
When fuel, wages and currency all rise faster than ticket prices, margins compress quickly.
New low-cost rivals crowd the home market
Roughly twenty airlines entered Kazakhstan recently, pushing fares down on the group's routes.