Air Astana plots Asian growth and joint ventures after record year despite currency challenges

Air Astana was dealt a bad hand in Feb-2014 when Kazakhstan devalued the local currency the Kazakhstani tenge by 18%, which comprised the majority of Air Astana's revenues. But the full year impact of efficiency gains and new cost-saving measures will see Air Astana end 2014 with a record operating profit.

Initial growth for 2014 was cut but will end the year up by 2-3%. 2015 and future years will have 7% growth - slower than in past years, but Air Astana is starting to mature.

Besides previous growth announcements, mainly to Europe, Air Astana will look to add services to China's Chengdu and Shanghai as well as Tokyo, possibly in partnership with ANA or JAL.

More growth is planned for Seoul, where Air Astana hopes to have a joint venture with Asiana. A JV is also planned with Etihad Airways covering the Middle East. Air Astana has grown sixth freedom traffic from zero in 2009 to 13% in 2014 and expects this could rise to 20% in the medium term, but Air Astana remains focused on regional sixth freedom traffic and not intercontinental traffic flows.