Mankind grows richer and wants to fly. Mankind must assemble 6 air vessels a day to satisfy the demand in airline services. How do these tendencies influence the Kazakh aviation?
Almas Chukin, famous Kazakh economic observer reviews “epic stories” of the indigenous aviation, particularly in the light of public grievances aboutFly Arystan.
“Discussions how to develop air business cause bewilderment. There are 3 to 4 arguments, circulating on the net, but they have no sense.
Aberration #1: Air tickets are that expensive because we do not have proper competition.
People insist, that once we have more air companies, their services will be more affordable and we will be able to fly to all cities.
That will not be. Things will be more expensive and planes will only fly to where their owners find it profitable. Air Astana’s average load is 83%, which means they operate to full capacity, except of some inconvenient and unpopular flights. If they, hypothetically, drop down their prices, their load will only go up and we will suffer from ticket deficit …
Aberration #2: Main air expenditures – machinery and fuel
People say, that fuel prices are close to global ones, or do not differ from them. In reality, the most important expenditure for an air company – cost of money. A big profitable air company with property to mortgage can always buy machines for cheaper credit rates.
Aberration #3: We got foreign pilots, because we do not have enough Kazakh pilots.
Pilots are trained and recruited accordingly. Women are pilots nowadays. Training of a pilot takes time. As for foreign pilots, they will not come to Kazakhstan to work for lower salary. They will come to work for higher salary.
We need to replicate successful business experience
We just need to study foreign experience and replicate the best practices. Turkish Airlines is a national company and something Turkiye are proud of. The company is the leader of the global market, considering locations they reach and directions of flights. The global aviation are looking forward to hear their long-waited announcement of willingness to buy 600 vessels. They promised to make a statement in Paris last month, but they postponed it. Airbus and Boeing are impatient and eager to bid.
After the purchase, Turkish Airlines will have 850 planes.
Nobody in Turkiye proposes to split Turkish Airlines and AnadoluJet. In Dubai, for example, Emirates first helped the government to create the Fly Dubai lowcoster, but now both companies are merging, because that is more effective.
Mankind Grows Richer and Wants to Fly
Aviation has a bright future. Mankind is growing richer and wants to fly.
Boeing’s annual report states that the demand in new vessels for substitution of old ones of expansion of fleet is at 42,600 vessels in the next 20 years, the cost of which demand is USD8 trillion.
If all air-vessel manufacturers give up weekends and holidays, they will need to make 6 planes a day
Can you imagine, how much money circulates in that industry, if only planes by themselves cost that much?
Big business demands big magnitudes and scales. A big country demands a bigger company that will be capable to run everywhere inside and out.
In UK, when they were discussing the Heathrow expansion, they argued that construction of one more landing strip will increase the country GDP by 2-3%, because such great will be the aggregate economic effect
Last year, Air Astana carried 7.5 million passengers with their 43 planes, thus making profits and proceed to develop without state money and, what is more important – without crashes.
