fulfilling our
promises
Air Astana Group integrated annual report 2024
AIR ASTANA GROUP Integrated Annual Report 2024
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fulfilling our promises
The Air Astana Group is the largest airline group in Central Asia and
the Caucasus regions by revenue and fleet size, operating over 107
routes across 22 countries, through its two leading brands, Air Astana,
our full-service airline, and FlyArystan, our low-cost carrier. We operate
at the heart of one of the fastest-growing aviation markets in the world.
We employ over 6,000 people and have established a vibrant team
culture that centres on excellence, operating with a great sense of
pride and a strong sense of determination to maintain the high
standards that our Group is founded upon. We have developed an
award-winning level of service from an extremely efficient platform.
Air Astana and FlyArystan carry out complementary roles within our
family structure.
Underpinning our vision of growing from the heart of Eurasia to build
one of the finest airline groups in the world, our strategy is built on
three key pillars of growth, efficiency and excellence.
From the heart of Eurasia we are
building one of the finest airlines
in the world.
fulfilling our promises
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
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fulfilling our promises
growth
Making the most of strong demand and opportunities across
growing domestic, regional and international markets
Record dividends proposed and enhanced dividend policy going forward
RASK growth largely offsetting CASK, positive quarter on quarter trend
Effective yield management
EBITDAR growing faster than capacity
Improved average load factor
Growth in passenger numbers
Fleet expansion ahead of the plan
Growing demand in domestic market and Asia/Middle East
Expansion of the network
AIR ASTANA GROUP Integrated Annual Report 2024
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fulfilling our promises
57
aircraft across the Air Astana Group
107
routes across 22 countries
21
routes opened in 2024
68%
Group’s domestic market share
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
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83.5%
Group’s average load factor
6
AIR ASTANA GROUP Integrated Annual Report 2024
fulfilling our promises
fulfilling our promises
efficiency
Proactive cost management and investment in operational
facilities
Invest in more fuel-efficient and modern aircraft to support our sustainability
objectives and increase passenger comfort
Continued improvements and expansion of in-house fleet maintenance and
training facilities, plans to establish Air Astana Terminal Services
Extended range of narrow-body aircraft
Successful execution of Pratt & Whitney mitigation plan
Dynamic capacity management to offset rises in unit costs
Robust CASK performance
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
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fulfilling our promises
excellence
Well positioned to achieve further growth
Air Astana Group continues to expand its global network by establishing strategic
partnership through codesharing and interline agreements with major airlines
Continue enhancing award-winning customer experience with upgraded website,
new app, improved loyalty programme, lounges in Almaty and Astana
Air Astana is committed to updating its Low-Carbon Development Programme (LCDP)
with credible near-term milestones and a target of net-zero emissions by 2050,
aligned with the Paris Agreement
FlyArystan received an Air Operator Certificate (AOC) and separate IATA code
AIR ASTANA GROUP Integrated Annual Report 2024
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fulfilling our promises
Air Astana:
Best Airline in Central Asia & CIS by Skytrax for
thirteen years running
Best Airline Staff Service in Central Asia & CIS award
for the eighth time
APEX Best Overall Airline in Central Asia
APEX Five Star award in the ‘Major Airlines’ category
in 2024
FlyArystan:
Best Low-Cost Carrier in Central Asia &
CIS award for the second time
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
9
At a glance
Highlights 11
Investment case 12
The Group at a glance 14
Strategic report
Chair statement 20
CEO’s statement 24
External environment 27
Business model 32
Strategy 34
Key performance indicators 36
Sustainable resources and relationships 38
Principal risks and uncertainties 74
Operating review 82
Financial review 92
Governance
Introduction to Corporate Governance 98
Corporate governance framework 100
Board leadership and Company purpose 101
Strategic Planning Committee report 108
ESG Committee report 109
Division of responsibilities 110
Board of Directors 112
Senior management team 114
Composition, succession and evaluation 116
Nomination and Remuneration Committee report 118
Remuneration report 120
Treasury Committee report 123
Audit Committee report 124
Responsibility statement 127
Financial statements
Statement of management’s responsibilities 130
Independent auditors’ report 131
Consolidated statement of profit or loss 135
Consolidated statement of other comprehensive income 136
Consolidated statement of financial position 137
Consolidated statement of changes in equity 138
Consolidated statement of cash flows 139
Notes to the consolidated financial statements 140
Additional information
Major transactions 182
Economic performance 182
GRI content index 183
Independent practitioner’s assurance report 186
TCFD 188
Glossary 196
Contents
AIR ASTANA GROUP Integrated Annual Report 2024
10
fulfilling our promises
Total revenue*
(USD)
1,308m
+12.4% Year-on-year
2023: 1,164m
ASK
19.3bn
+9.2% Year-on-year
2023: 17.7bn
Adjusted EBITDAR*
(USD)
338.6m
+16.1% Year-on-year
2023: 291.6m
CASK* (USCents)
6.02
+2.7% Year-on-year
2023: 5.86
Load factor
83.5%
+0.7pp Year-on-year
2023: 82.8%
RASK* (USCents)
6.75
+2.6% Year-on-year
2023: 6.58
RPK
16.1bn
+10.1% Year-on-year
2023: 14.6bn
Number of passengers
9.0m
+11.2% Year-on-year
2023: 8.1m
Adjusted EBITDAR*
margin
25.9%
+0.8pp Year-on-year
2023: 25.1%
Fleet size
57
16.3% Year-on-year
2023: 49
Group financial highlights
Group operational highlights
* Excluding non-recurring items: Net IPO related expenses of USD 1.8 million in 2023/USD 12.9 million in 2024. Revenue from the extraordinary market event impacted by partial mobilisation in Russia
of USD 11.0 million in 2023. RASK adjustment of USD 4.2 million in 2024. Donations of USD 2.7 million in connection with the flood situation in Kazakhstan in 2024.
AIR ASTANA GROUP Integrated Annual Report 2024
11
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
Investment case
Two airlines - doubling
the growth opportunity
One Group operating full-service and low-cost
carriers, with differentiated strategies to grow
profitably. Each airline targets different markets and
customer needs: Air Astana, our full-service airline,
focuses on business and lifestyle travel; FlyArystan,
our low-cost brand, independently managed
and scalable, bolsters demand for air travel.
AIR ASTANA GROUP Integrated Annual Report 2024
12
fulfilling our promises
Operational efficiency
A young and modern, fuel-efficient fleet
supports reliability and cost-effectiveness.
Advanced in-house training resources include
a Pilot ab-initio Cadet Programme to meet
the need for a local supply of qualified pilots,
and improved Airbus maintenance facilities
in house avoid ‘empty’ miles and days
travelling to other providers.
Clear market leader
Leading in the home market, Central Asia
and the Caucasus, the Group is well
positioned for untapped growth
opportunities. Kazakhstan is the fastest-
growing country in Central Asia, in the
highest air-traffic growth region (IATA), and
with easy access to extended home market
and megamarkets.
Financial resilience
The combination of proactive route
planning, cost leadership and operational
agility provides a successful formula for
promoting financial resilience throughout
the cycle, demonstrated by the strong
response to crises – Covid, the Russia-
Ukraine war and recent industry
challenges. The Group maintains a robust
balance sheet and liquidity position.
Commitment to sustainability
With well defined ESG targets, the Group
aims to become the most sustainable
airline in the CIS and Central Asia. Priorities
include the Low-Carbon Development
Programme, the safety, health and
wellbeing of employees, and funding
community projects.
Strong management and
governance
The business is supported by an experienced,
proven Board of Directors, management
team and sound governance practices.
Relatively low turnover among management
– an average tenure of 16 years – ensures a
strong culture, industry experience and
corporate memory.
Investment case continued
AIR ASTANA GROUP Integrated Annual Report 2024
13
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AKTAU
AKTOBE
ALMATY
ASTANA
AMSTERDAM
FRANKFURT
SHARM EL SHEIKH
ISTANBUL
PODGORICA
ANTALYA
HERAKLION
BODRUM
DOHA
MALE
GOA
LONDON
DELHI
URUMCHI
PHUKET
TBILISI
BATUMI
KUTAISI
BAKU
KOSTANAY
URALSK
ATYRAU
COLOMBO
JEDDAH
DUBAI
PHU QUOC
BANGKOK
KARAGANDA
SHYMKENT
DUSHANBE
SEOUL
BEIJING
SANYA
MEDINA
KYZYLORDA
URALSK
ATYRAU
AKTAU
AKTOBE
KYZYLORDA
TURKISTAN
SHYMKENT
ALMATY
KOSTANAY
ASTANA
SEMEY
KARAGANDA
OS
KEMEN
PAVLODAR
BISHKEK
TASHKENT
The Group at a glance
At the heart of
everywhere
The Air Astana Group continued to
expand its network and, at the end
of2024, Air Astana operated on 63 routes
and FlyArystan on 59.
This covers five geographical areas, increasing our share
of both the domestic market and in the Central Asian and
Caucasus region as well as on international routes to multiple
locations across Europe (such as London, Amsterdam and
Frankfurt), Saudi Arabia (such as Jeddah and Medina) and
Asia (such as Beijing and Bangkok and lifestyle destinations
in Asia). We are building our presence in theflourishing
‘lifestyles’ market and now fly to popular tourist destinations in
Egypt, Georgia, Greece, Maldives, Montenegro, Thailand, Turkey
and the UAE. In line with this broader geographic spread and
increased flight availability, we also experienced strong
passenger growth, carrying nine million passengers in 2024.
New routes and network expansion
As at 31 December 2024, the Group’s passenger network covered
107 routes (74 international and 33 domestic), 45 destinations in
22 countries. The Group further expanded its network in 2024
with new routes and destinations to high-demand regions across
Asia, including China, the Gulf, India and Vietnam.
Routes
59
Destinations
23
Passengers
4.2m
Low-cost carrier
Market disruptor
Rapid network expansion in the
domestic and nearby markets
Focus on international
destinations within five hours
High-density single-class
seating
High aircraft utilisation
compared with peers
Diversified across three bases
Routes
63
Destinations
38
Passengers
4.8m
Full-service airline
Primary focus on business
and direct flights to lifestyle
destinations
Expanding regional and
international network
Modern fuel-efficient aircraft
Two classes of cabin
High aircraft utilisation
compared with peers
14
AIR ASTANA GROUP Integrated Annual Report 2024
fulfilling our promises
AKTAU
AKTOBE
ALMATY
ASTANA
AMSTERDAM
FRANKFURT
SHARM EL SHEIKH
ISTANBUL
PODGORICA
ANTALYA
HERAKLION
BODRUM
DOHA
MALE
GOA
LONDON
DELHI
URUMCHI
PHUKET
TBILISI
BATUMI
KUTAISI
BAKU
KOSTANAY
URALSK
ATYRAU
COLOMBO
JEDDAH
DUBAI
PHU QUOC
BANGKOK
KARAGANDA
SHYMKENT
DUSHANBE
SEOUL
BEIJING
SANYA
MEDINA
KYZYLORDA
URALSK
ATYRAU
AKTAU
AKTOBE
KYZYLORDA
TURKISTAN
SHYMKENT
ALMATY
KOSTANAY
ASTANA
SEMEY
KARAGANDA
OSKEMEN
PAVLODAR
BISHKEK
TASHKENT
AKTAU
AKTOBE
ALMATY
ASTANA
AMSTERDAM
FRANKFURT
SHARM EL SHEIKH
ISTANBUL
PODGORICA
ANTALYA
HERAKLION
BODRUM
DOHA
MALE
GOA
LONDON
DELHI
URUMCHI
PHUKET
TBILISI
BATUMI
KUTAISI
BAKU
KOSTANAY
URALSK
ATYRAU
COLOMBO
JEDDAH
DUBAI
PHU QUOC
BANGKOK
KARAGANDA
SHYMKENT
DUSHANBE
SEOUL
BEIJING
SANYA
MEDINA
KYZYLORDA
URALSK
ATYRAU
AKTAU
AKTOBE
KYZYLORDA
TURKISTAN
SHYMKENT
ALMATY
KOSTANAY
ASTANA
SEMEY
KARAGANDA
OSKEMEN
PAVLODAR
BISHKEK
TASHKENT
Routes
59
Destinations
23
Passengers
4.2m
Low-cost carrier
Market disruptor
Rapid network expansion in the
domestic and nearby markets
Focus on international
destinations within five hours
High-density single-class
seating
High aircraft utilisation
compared with peers
Diversified across three bases
Destinations
45
Domestic and international
routes in2024
107
Air Astana
FlyArystan
Domestic routes
The Group at a glance continued
Air Astana/FlyArystan
AIR ASTANA GROUP Integrated Annual Report 2024
15
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
2002
First flight Almaty
–Astana
First International
flight Almaty – Dubai
2003
European Aviation
Safety Agency’s (EASA)
Joint Aviation
Requirements (JAR) 145
certification received for
Engineering and
Maintenance
2007
Launch of frequent flyer
programme Nomad
Club
2008
Launch of ab-initio pilot
training programme
Officially registered
by IATA as an
Operational Safety Audit
(IOSA) - compliant carrier
2014
Air Astana became a
Member of Association
of Asia Pacific Airlines
2016
Delivery of first
A320neo aircraft
and start of fleet
simplification
programme
2012
First in CIS four-star
Skytrax rating
First own aircraft
delivery
2018
Commissioning of the
aviation technical
centre in Astana
2013
Skytrax award best
airline in Central
Asia and India and
best airlineservice
2022
First Heavy maintenance
in-house C2-check completed
Delivery of first new Airbus
aircraft - FlyArystan
2023
FlyArystan awarded
four-star LCC
Inauguration of full-flight
simulator
2019
Launch of FlyArystan,
the low-cost carrier
inCentral Asia
2021
The Group is one of the
first airlines to return to
profitability in H1 2021
FlyArystan launched
first international route
Turkistan – Istanbul
Successful IPO on three stock exchanges
FlyArystan obtained AOC and separate IATA code
All eligible employees were granted shares of
Air Astana as a part of long term incentive
programme
FlyArystan completed a Skytrax Audit,
reaffirming its four-star LCC status
Air Astana Group is now a certified ACCA
(Association of Chartered Certified Accountants)
Approved Employer at Platinum level
EASA – Part 145 and Part 147 renewal audits
2001
Creation of Air Astana as
a JVbetween the Republic
of Kazakhstan and BAE
Systems
The Group at a glance
Our journey
2024
16
AIR ASTANA GROUP Integrated Annual Report 2024
fulfilling our promises
The Group at a glance
Our growth
Building on a compelling historical
growth trajectory, we achieved
strong growth in our first year as
a public company, fulfilling our
promises set out at IPO despite
the capacity and cost challenges
that affected the wider industry.
Underpinned by a growing fleet and
expanded capacity, the Group added
nearly a million passengers in 2024
with an increasing load factor, thanks
to growing demand for air travel across
Kazakhstan, our extended home
market and nearby megamarkets.
2029
84
Group fleet
54
Air Astana fleet
30
FlyArystan fleet
52%
market share
4.3m
total passengers
34
Air Astana fleet
2018
83%
market share
2.5m
total passengers
22
Air Astana fleet
2010
FlyArystan
28%
market share
23
fleet
Air Astana
40%
market share
34
fleet
68%
combined market share
9.0m
total passengers
57
Group fleet
Forecast
2024
AIR ASTANA GROUP Integrated Annual Report 2024
17
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
A clear leader in our home market,
well positioned for untapped
growth opportunities
There are substantial opportunities for growth within
this highly underserved market with a low propensity
to fly.
The Group at a glance
A future of
opportunity
Population of Kazakhstan
20.3m
Total domestic market in Kazakhstan
9.2m
Forecasted propensity to fly ratio
by 2030
1.75
The Group is well positioned to
achieve further growth across both
brands in 2025. Our international
passenger base has evolved
significantly in recent years, with both
Air Astana and FlyArystan expanding
their networks. This opportunity is
underpinned by a highly underserved
domestic market, with a growing
propensity to fly, a significantly under-
served market in the Central Asia and
Caucasus region where we can help
improve air travel connectivity, and a
strategic location with easy access to
megamarkets.
AIR ASTANA GROUP Integrated Annual Report 2024
18
fulfilling our promises
Significantly underserved market in
Central Asia and the Caucasus
region
Air Astana Group can help improve air travel connectivity in
thesignificantly underserved market of the Central Asia and
the Caucasus region.
Ideally positioned to connect nearby
megamarkets
Kazakhstan is strategically located with easy access to
two of the largest aviation markets in the world, India
and China, and close proximity to the Middle East and
Europe.
Passengers: China and India
950m+
Passengers: Western Europe
1.4bn
Passengers: Middle East
402m
Population of Central Asia andCaucasus
97m
Weekly frequencies: Air Astana
38
Weekly frequencies: FlyArystan
18
19
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
This accomplishment demonstrates our remarkable
success over the last two decades as one of the
fastest-growing airline group’s in the world, and is
something of which we feel justifiably proud. It is
a recognition of the long-running growth trajectory
and strong foundations of the Air Astana Group,
and the compelling prospect of increased air travel
across our key markets.
The listing has been transformational for the
Group’s shareholder structure, going from having
had only two shareholders for 22 years, to now
having more than 60,000 shareholders including
institutional and retail investors. It was the first
privatisation in Kazakhstan, with the State share
dropping below 50% after the public offering,
although both foundational partners remain major
shareholders. The listing creates the perfect
platform both for local Kazakh investors and
international investors to participate in our success
story, as we continue to grow into one of the top
international airline groups. I look forward to
continuing Air Astana’s journey with the Board and
its Executive Management team, as we continue in
defining and executing our strategy for growth.
By dynamic capacity reallocation to higher margin
routes in Asia and the Gulf, we improved Revenue
per Available Seat Kilometer (RASK) by 2.6%*,
which largely offset the rise in unit costs. This
resulted in a 12.4% increase in revenue, to USD 1.3
billion*, and a 16.1% improvement in adjusted
EBITDAR to USD 338.6 million*, ahead of ASK
growth of 9.2%.
Welcome to the Air Astana Group Annual Report
for 2024. In the first quarter of 2024, Air Astana Group
celebrated the major milestone of a successful USD
365 million IPO on the London Stock Exchange,
Kazakhstan Stock Exchange and Astana International
Exchange – becoming the first company, both
domestically and internationally, to achieve a
simultaneous listing on three stock exchanges.
Chairman’s statement
A platform for investment
AIR ASTANA GROUP Integrated Annual Report 2024
20
fulfilling our promises
Macro trends and performance
Central Asia continues to be one of the
fastest-growing aviation markets in the world,
a fact declared both by IATA as well as a recent
Asian Development Bank report, and I believe
Kazakhstan is the one of the region’s most
promising markets. Due to its strategic location,
Kazakhstan is well positioned to serve as a link
between Europe and East Asia, as well as being
at a reasonable distance from the Middle East.
The country is often regarded as the ‘centre’
of the world, or to borrow the aviation
jargon, as a ‘mid-way hub’. As the leading
carrier of Kazakhstan, we are proud of our
role in transforming connectivity across the
region, which we believe has untapped
growth potential, especially when we include
our nearby megamarkets of China, India, the
Gulf and Saudi Arabia. Passenger demand
remains strong across both our full-service
airline Air Astana and our low-cost carrier
FlyArystan, and we are increasing capacity
by expanding the fleet and optimising
resources.
However, other challenges faced the airline
industry in 2024. These included the Pratt &
Whitney engine issue, as well as other
supply-chain constraints, which put pressure
on capacity.
There was also a significant increase in costs
across the board – airports, navigation,
maintenance, aircraft charges, and smaller
ancillary costs. Another major global theme
was that the significant post-Covid increase in
yields experienced in 2022 and 2023 stalled to
some extent, exacerbated by the cost of living.
Despite these ongoing headwinds across the
broader aviation industry, I’m pleased to report
a strong performance from the Group. Through
our Pratt & Whitney mitigation plan, we rested
engines during the low season in order to
maximise availability during the summer peak.
Our central geographical location and flexible,
dual-brand model enabled us to optimise
capacity by swiftly reallocating aircraft from
lower-performing Western routes towards
higher-margin routes in Asia and the Middle
East. As a result, the Group has mitigated cost
pressures and achieved a healthy adjusted
EBITDAR margin* of 25.9% Our unit cost
remains a strategic advantage, enabling us to
expand short and long-haul routes while
competing effectively with other airlines and
outperforming the wider sector.
Dividend and share buyback
Our solid performance has led to a strong
financial position and a healthy balance sheet.
The Company has been very successful at
generating cash in recent years and this
continued in 2024, leading to a very sound
cash position in comparison with other airlines,
whether measured in cash to sales, cash to
EBITDAR, or net debt to EBITDAR. This has
allowed us to approach the question of
dividends in that context.
The Board of Directors recommended to the
Annual General Meeting of Shareholders
(AGM) an ordinary dividend of KZT 17.7 per
one common share (KZT 70.9 per GDR – of
four shares), a total dividend of KZT 6.3 billion,
earlier than the medium-term guidance set
out at IPO. Additionally, in light of the Group’s
robust financial results for 2024 and strong
balance sheet, the Board of Directors has
recommended a special dividend of KZT 36.0
per one common share (KZT 143.9 per GDR),
a total dividend of KZT 12.8 billion.
The total proposed dividend (ordinary and
special dividend) amounts to KZT 53.7 per one
common share and KZT 214.8 per GDR. The
Board of Directors has approved an enhanced
dividend policy stipulating a dividend of 30%
to 50% of annual consolidated net income,
ahead of the previous guidance of up to 20%.
In recognition of the hard work and commitment
shown by our colleagues, on 30 April 2024 we
began a share buyback programme to enable
our long-term incentive plan. As at 31 December
2024, the Group had purchased in total
4,638,555 shares for a total consideration of
USD 8.2 million. First vesting of shares and
global depositary receipts (GDRs) to employees
was made on 17 February 2025.
Strong governance
Our listing on three stock exchanges will
undoubtedly increase the visibility of our
business and attract investors’ attention. I
would like to assure all current and prospective
investors that Air Astana Group has always had
a strong commitment to corporate governance,
integrity and compliance, and this will remain
a priority throughout my tenure as Chairman
of the Board. Our highly experienced senior
management team has already proven its ability
to maintain our financial objectives and growth
trajectory throughout a variety of challenging
macroeconomic and geopolitical environments,
enabling both Air Astana and FlyArystan to
outperform many of its peers and deliver
results in line with market expectations.
* Excluding non-recurring items: Net IPO related expenses of USD
1.8 million in 2023/USD 12.9 million in 2024. Revenue from the
extraordinary market event impacted by partial mobilisation in
Russia of USD 11.0 million in 2023. RASK adjustment of USD 4.2
million in 2024. Donations of USD 2.7 million in connection with
the flood situation in Kazakhstan in 2024.
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
21
Chairman’s statement continued
Board and management
At the AGM on 30 May 2024, as had been
previously announced, Myles Westcott
stepped down from the Board, while Diyas
Assanov was appointed as an Independent
Non-Executive Director, starting on 31 May
2024. Myles Westcott was a valuable member
of the Board and I would like to thank him for
his contribution to the success of the Group
over the last six years. Diyas Assanov brings
extensive experience in engineering, transport
and communications, which will be instrumental
in supporting the next stage of our development,
particularly our ongoing digitalisation.
Colleagues and culture
We are the largest employer in Kazakhstan,
providing interesting and motivating work for
6,546 colleagues, whose expertise and skills
are invaluable assets for our business. We
provide a positive and inclusive work
environment based on our corporate values
and a culture of recognition. In addition, I am
proud that Air Astana was included in the
ranking of the best IT employers in Kazakhstan
according to People Consulting, confirming its
attractiveness to industry specialists.
Excellence lies at the centre of all we do and,
by establishing it throughout our culture, we are
building an engaged and satisfied workforce.
We believe this focus on excellence will play a
key role in positioning ourselves as one of the
finest airline groups in the world. It is one of the
strategic pillars on which we have built our status
as a major economic and social enabler within
Kazakhstan. Our Group values underpin our ethos
of recognition, professional development and,
above all, equality of opportunity.
On this note, I would like to thank all my
colleagues for their hard work throughout the
year, and continued commitment to excellence
and the highest levels of customer service,
which is the foundation of our growth. Our
strong competitive position in a growing
aviation market provides a solid platform as
we look to the future with confidence.
Embracing ESG
At Air Astana Group, we embrace sustainability
as a fundamental part of our future success.
Our comprehensive ESG Strategy for 2023–2032
is accompanied by a series of planned ESG
initiatives aimed at reducing our consumption
of resources, and our environmental impact.
We have also developed a broad scope of
activities that prioritise the safety, health and
wellbeing of employees and contractors, along
with projects that support the wider community.
The aviation industry as a whole is responsible
for, and committed to, minimising its
environmental impact, and we at Air Astana have
pledged to become one of the most sustainable
airlines in the CIS and Central Asia. We are
exploring alternative energy sources and
implementing fuel-efficient flight plans, as well as
looking at the potential of producing and using
sustainable aviation fuel (SAF) inKazakhstan.
Outlook
For a variety of reasons, many airlines could
suffer capacity shortages in 2025, yet we are
well positioned due to investment in our fleet
and facilities, our successful management of
Pratt & Whitney engine issues by introducing
an engine-resting programme, and our ability
to realign capacity to ensure the highest
margin and mitigate cost pressures. Additionally,
although the whole sector is benefiting from
growth in premium leisure traffic, we see
significant opportunities to add services to our
existing routes and expand into new
geographic areas, aiming to realise our vision
of growing from the heart of Eurasia to build
one of the finest airline groups in the world.
Nurlan Zhakupov
Chairman of the Board of Directors
As the flagship carrier of Kazakhstan, we are proud of our
role in transforming connectivity across the region, which
we believe has untapped growth potential.
Nurlan Zhakupov
Chairman of the Board of Directors
Chairman’s statement continued
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
22
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
23
CEO’s statement
In 2024, the Air Astana Group carried
9.0 million passengers, a growth of
11.2% year on year, generating
USD 145.7 million operating profit
on total revenues of USD 1.3 billion,
an increase of 14.9% and 12.4%
respectively on an underlying basis
1
.
Profit after tax was USD 65.2 million,
a growth of 6.0% excluding
non-recurring items
1
.
We achieved strong growth in our first year as a public
company, fulfilling our promises set out at IPO, despite
the capacity and cost challenges impacting the wider
industry. The Group added nearly a million passengers
in 2024, with an increasing load factor, driven by growing
demand for air travel across Kazakhstan, our extended
home market and nearby megamarkets. By allocating
capacity to higher-margin routes in Asia and the Gulf, we
improved RASK by 2.6% which largely offset the rise in
unit costs. This resulted in a 16.1% improvement in
adjusted EBITDAR to USD 338.6 million, ahead of ASK
growth of 9.2%. The RASK-CASK index differential
improved progressively over the quarters and turned
positive in Q4, resulting in RASK growth almost fully
offsetting CASK for the year and exceeding our guidance.
1
Excluding non-recurring items: Net IPO related expenses of
USD 1.8 million in 2023/USD 12.9 million in 2024. Revenue from
the extraordinary market event impacted by partial mobilisation
in Russia of USD 11.0 million in 2023. RASK adjustment of
USD 4.2 million in 2024. Donations of USD 2.7 million in connection
with the flood situation in Kazakhstan in 2024.
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
24
We continue to proactively manage the fleet
and add capacity in line with our growth
strategy. Under our Pratt & Whitney mitigation
plan, we took early action to rest engines in
the low seasons, secure additional aircraft
and spare engine capacity. We added eight
(net) aircraft in 2024, ahead of guidance, the
fleet has subsequently expanded to 60 and
is expected to reach 63 aircraft by year end.
The network continues to grow, with 21 new
routes added in 2024, 14 of which launched
in Q4. In 2025, we have already announced
another eight new routes in key growth
markets, including direct flights from Almaty
to Frankfurt, Guangzhou, Mumbai, and Da
Nang and Nha Trang in Vietnam. The
installation of auxiliary fuel tanks on the
Airbus A321LR has made new routes possible
by extending cost-efficient narrow-body
range on long-haul flights.
We are delighted to announce that we have
signed an MoU with China Southern Airlines,
China’s powerhouse airline, for a
comprehensive set of codeshares across
China, Kazakhstan and, subject to third-country
bilateral agreement, other countries in East
Asia, Central Asia and the Caucasus. I cannot
sufficiently emphasise that this key partnership,
once the MoU has been translated into a
concrete agreement, will accelerate our
expansion into this neighbouring
megamarket.
In addition, the new international terminal at
Almaty airport has doubled capacity at our
main hub, resolving a key constraint on the
Group’s future growth.
The Group’s operational efficiency is
underpinned by investment in our people
and facilities. In 2024, our Advanced Technical
Centre performed the most comprehensive
12 Year C-check on our Airbus fleet, and
construction plans are progressing for new
hangars in Almaty and Astana to further
expand maintenance capacity. We are
constantly looking at ways to make operations
even more efficient and turn costs into profit
centres. We have just received our second full
flight simulator, which will be in service by
the year end.
We are in the process of establishing our
Ground Services subsidiary, Air Astana Terminal
Services, to increase efficiency and potentially
generate revenue by serving other airlines at
our principal hubs at Almaty and Astana.
We have continued to focus on high-quality
service delivery, reflected by the Skytrax
award for Air Astana of Best Airline Central
Asia and CIS, for the thirteenth year running,
Best Airline Staff Service in Central Asia and
CIS for the eighth year running, and for
FlyArystan, Best Low-Cost Airline Central Asia
and CIS for the second year running.
Our financial performance and robust balance
sheet give us the confidence to recommend
an ordinary dividend of KZT 6.3 billion (USD
13.0 million), sooner than guided, and an
additional, special dividend of KZT 12.8 billion
(USD 25.2 million). This is testament to the
efforts of all our employees across Air Astana
and FlyArystan, who last month became
shareholders under the Employee Share
Ownership Plan, a fitting reward for their
commitment over several years.
Entering the new financial year, we are well
positioned to deliver growth across both our
brands, underpinned by strong demand and
expanded capacity. While cost inflation and
supply chain disruption across the wider
industry are likely to remain for some time,
we are among the best placed in the industry
due to our low unit costs, high operating
margins and dynamic approach to fleet
management. As a result, we are confident
in delivering our medium-term guidance.
I would like to conclude by thanking my
fellow board directors, shareholders, business
and government partners for their continued
support, our customers for their continued
loyalty, and my colleagues for their continued
dedication and professionalism. All have
contributed to a solid performance in 2024.
Peter Foster
Chief Executive Officer
We are delighted to announce that we have signed an
MoU with China Southern Airlines, China’s powerhouse
airline, for a comprehensive set of codeshares across
China, Kazakhstan and, subject to third country
bilateral agreement, other countries in East Asia,
Central Asia and Caucasus
CEO’s statement continued
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
25
The restoration of connectivity ispowering the
global economy aspeople travel to do business,
further their education, take hard-earned
vacations and muchmore. But to maximise
the benefits of airtravel in the post-pandemic
world, governments need to take a strategic
approach. That means providing cost-efficient
infrastructure to meet demand, incentivising
SAF production to meet our net-zero carbon
emission goal by 2050 andadopting regulations
that deliver a clear cost benefit.
Willie Walsh IATA Director General
26
AIR ASTANA Integrated Annual Report 2024
fulfilling our promises
Regional variations
This year, all regions out-performed their
pre-pandemic levels. Asia Pacific airlines led in
annual growth by a large margin, achieving a
16.9% year-on-year increase in RPK. Africa also
grew above the industry average, ranking second
with 13.2% year-on-year. North American airlines
tailed the regions, rising 4.6% from a higher base.
On the supply side, ASK increases in all regions,
except North America, were lower than the rise in
RPK, leading to higher load factors across the board.
The Asia Pacific region contributed more than half of
the net increase in passenger traffic over 2024.
Northeast Asia led in passenger traffic growth,
reflecting the ongoing ramp-up of international
traffic from China to nearby sub-regions, along with
a substantial increase in domestic tourism within
the country. The two other largest airline regions,
Europe and North America, contributed a third of
total RPK growth. Conflicts and strained airspace
continued to impact the free flow of air traffic in
some parts of the world, leading more passengers
to travel through Middle Eastern hubs than ever
before. Between Europe and the Middle East, traffic
was 11.9% higher than the pre-pandemic record of
2019 and increased 4.8% year-on-year. RPK also
rose 10.1% year-on-year between the Middle East
and Asia, surpassing 2019 levels by 3.1%.
Emerging aviation markets grew the most in 2024.
Countries in Northern Africa, Eastern and Central
Europe, and Central Asia have outpaced the
industry average. Traffic in the Southwest Pacific
also exceeded the global mean, reflecting a
resurgence in travel within the broader Asia Pacific
region. In contrast, while the Middle East has
become a crucial part of global air traffic, the
region saw only modest growth in international
passengers in 2024.
Global markets
Over the past year, the global economy has been
remarkably stable. Unemployment rates in
Organisation for Economic Co-operation and
Development (OECD) countries were below historical
averages, global inflation rates continued to fall,
and ticket prices moderated, fuelling demand. The
passenger-market figures of the International Air
Transport Association (IATA) for the full year 2024,
showed demand at an all-time high. Total full-year
traffic in the year (measured in revenue passenger
kilometres or RPKs) rose 10.4% compared to 2023.
This was 3.8% above pre-pandemic (2019) levels.
Total capacity, measured in ASK, was up 8.7%. The
overall load factor reached 83.5%, a record for
full-year traffic.
International full-year traffic in 2024 increased 13.6%
compared to 2023, and capacity rose 12.8%.
Domestic full-year traffic rose 5.7% compared to the
previous year, while capacity expanded by 2.5%.
December 2024 was a strong finish to the year with
overall demand rising 8.6% year-on-year, and
capacity grew by 5.6%. International demand rose by
10.6% and domestic demand by 5.5%. The December
load factor reached a new record level of 84%.
As Willie Walsh, IATA’s Director General, observed,
“2024 made it absolutely clear that people want to
travel, and airlines met that strong demand with
record efficiency. Aviation growth reverberates
across societies and economies at all levels”.
With this growth comes the need to keep aviation
as safe as possible, and to continue aiming for net
zero. On the latter point, Walsh commented, “Less
than 0.5% of fuel needs were met with SAF in 2024.
SAF is in short supply and costs must come down.
Governments could fortify their national energy
security and unblock this problem by prioritising the
renewable fuel production from which SAF is derived”.
External environment
In the middle of everywhere
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
27
Global affairs and industry trends
In 2024, Brent crude oil dropped by around
20% over the year, due to over-supply as the
US affirmed its position as the world’s
leading oil producer, and to shifting demand
for different energy products, especially in
China. Lower oil prices will strengthen
oil-importing countries’ financial positions,
offering an opportunity to redirect fossil-fuel
subsidies towards renewable energy
production, supporting aviation’s energy
transition. More immediately, airlines will
benefit from lower crude oil prices as long as
jet fuel prices decline in parallel. Fuel is their
largest cost component, representing around
30% of total costs.
Another major influence on the industry is
seasonal demand, with busier summers and
quiet winters. This is due largely to leisure
travel’s increasing share of the total market
– most pronounced in Europe, but affecting
many regions. Airlines have responded by
operating more routes at greater frequency
during peak periods, and so earning a
disproportionate amount of their revenue
during the summer.
Kazakhstan and Central Asia
The domestic Kazakhstan market
Kazakhstan’s air transportation market
continues to break records. In 2024,
Kazakhstani airlines carried a record 14.7
million passengers, 10.6% more than the
previous year (13.3 million passengers in
2023), according to the Bureau of National
Statistics of the Republic of Kazakhstan.
Passenger traffic growth remains in double
digits, which indicates a high demand for air
transportation. According to the Ministry of
Transport, Kazakhstan’s airports handled 29.7
million passengers (+14% year-on-year),
including international airlines, which hold
about 50% of the market. Almaty airport has
set a new record, serving 11.4 million
passengers (+20% on 2023), 78% higher than
the pre-pandemic figures. This makes it the
largest aviation hub in the region of Central
Asia, the Caspian Sea and Caucasus. The
capital’s airport in Astana handled 8.3 million
passengers (+11% year-on-year).
The growth of passenger traffic continues to
be stimulated by the extension of the Open
Skies programme until 2027, as well as the
increasing popularity of air transport in the
country. In addition, there are many other
signs of the potential of increased growth:
the flight safety level rose from 74% to 82%;
Kazakhstani airlines resumed flights to the
European Union countries; and the domestic
air fleet is growing, with the number of
aircraft increasing by 13% year-on-year.
Six airlines currently operate 56 domestic
routes, and international air traffic has
expanded to 31 countries and 58 cities, with
flights on 119 routes. The sector requires
500-600 new specialist workers each year,
to add to its current workforce of 23,000. The
industry is rapidly transforming digitally, with
an electronic document-management system
for cargo, an e-identity card system for
passengers, and biometric identification. By
2030, Kazakhstan aims to increase passenger
traffic from 14.7 million to 26 million and cargo
volumes from 170,000 to 500,000 tonnes, plus
expand the aircraft fleet from 104 to 221, and
grow international routes from 119 to 200.
External environment continued
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
28
Importantly for growth, Kazakhstani citizens’
propensity to travel, while increasing, remains
low in comparison to peer countries with
similar levels of GDP per capita. For example,
the penetration figure (seats sold divided by
population) for Kazakhstan was 0.23 before
the launch of FlyArystan, and thereafter
doubled to 0.46. Now, the combined domestic
and international propensity of Kazakhstan is
0.6, but still low compared to similar countries
such as Malaysia (1.1), Turkey (1.2) and Mexico
(0.8). As an example of this in practice, the
strong demand within Kazakhstan for leisure
destinations in foreign countries, which
boomed during the pandemic, has shown no
signs of abating – and according to the IATA
forecast, propensity for air travel in Kazakhstan
should reach 1.75 by 2030, based on
Kazakhstan’s 2030 GDP per capita forecast.
Kazakhstan began its visa-free programme in
2014, starting with 19 countries. This initial
liberalisation brought an approximate 50%
increase in visitor numbers. Since then, the
list has significantly expanded, and in 2024,
Macao, Morocco, Sri Lanka, Thailand and
Vietnam were added with a stay period of up
to 60 days. Additionally, visa-free programmes
exceeded 101 countries, and e-visas are
offered for another 109 countries. Every year
the list of visa-free countries for Kazakhstan
expands, providing citizens with more
opportunities for travelling. Open-skies
agreements foster competition and flexibility
in international air travel by allowing airlines
from different countries the right to fly in and
out of each other’s nations. In October 2024,
the Kazakh Government included Kostanay
and Uralsk airports in its open-skies policy,
and then Atyrau and Kyzylorda airports in
January 2025, making a total of 24 airports.
Open-skies agreements on a mutual basis
were fixed with Malaysia, Qatar, UAE, USA
and Vietnam, while a draft of Horizontal
Agreement with the EU was initialled on
16 October 2024, which will allow every
European airline to fly from anywhere
in Europe to all cities in Kazakhstan.
External environment continued
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
29
Growing connectivity
Kazakhstan is strategically located within easy
access of two of the largest aviation markets
in the world, India and China, and relatively
close to the Middle East and Europe.
Flights to Europe have not yet reached
pre-pandemic levels owing to several
contributing factors: restricted traffic from
Russia; increased flying time due to avoiding
Russian airspace; and reduced labour traffic
due to the completion of a major domestic
oil project. However, non-stop Air Astana
flights from Almaty to Frankfurt and
Heathrow have been made possible by
installing a third fuel tank in the aircraft.
The drop in European traffic has been more
than compensated by strong growth in the
Middle East, Southeast Asia and India, as
Kazakhstan and Central Asia became
attractive destinations for many airlines.
In addition, it has been helped by the return
of the Chinese market, facilitated by the
visa-free regime introduced in 2024.
According to IATA, the overall number of
airline seats offered to Kazakhstan in the first
six months of 2024 compared with the same
period in 2019 increased by 143%, and the
number of passengers by 155%.
The scheduled capacity between China and
Kazakhstan in 2024 increased 140% from 2023,
demonstrating an interest in Kazakhstan as
a destination by Chinese airlines. This was
boosted by strengthening Government and
business relationships, and mutual tourism
campaigns between the two countries, which
will continue throughout 2025. Air Astana also
resumed its Astana – Seoul passenger flight in
mid-2024 after more than a four year pause. In
addition, total capacity between Kazakhstan
and India has increased 57% from 2023
and 125% from 2019, reflecting the recent
growth of the Indian economy. The flight time
between Delhi and Almaty is only 3.5 hours,
making Almaty a desirable destination as it
offers a comfortable climate for Indian tourists.
Indian citizens are now among the top three
foreign passport holders on all Air Astana
flights, the others being Russian and Chinese.
Opportunity in Central Asia
IATA has stated that Central Asia and the
Caucasus region, with its population of 97
million, will be the fastest-growing aviation
region in the world in the coming five to ten
years. It is a significantly underserved market
where the Air Astana Group can help improve
air-travel connectivity alongside new market
entrants, who will serve to increase the
popularity of travel in the region.
Low-cost carriers growth in
Central Asia
A 2024 Asian Development Bank study on the
CAREC region highlights the astounding
growth in LCCs in recent years. The CAREC
region includes the five Central Asian countries
– Kazakhstan, the Kyrgyz Republic, Tajikistan,
Turkmenistan and Uzbekistan – as well as
Azerbaijan, Georgia, Mongolia and Pakistan
(the Inner Mongolia and Xinjiang regions of
China are also part of CAREC, but not included
in the study). It states the overall LCC market
in Central Asia more than tripled in size from
2019 to 2022, making it the fastest-growing
low-cost travel market in the world. In the
wider CAREC region, the LCC market grew by
60% from 2019 to 2022. The rapid LCC growth
during the pandemic helped a quick recovery
of the CAREC air transport market, and Central
Asia was the only region in the world with
seat capacity above 2019 levels by 2022.
FlyArystan is the largest LCC in CAREC, with
a significant share of the region’s LCC seat
capacity as of the latest available data.
Pakistan’s Airblue had about a 13% share,
while Uzbekistan Express and Buta Airways
had 4% each. Over half the market was
controlled by foreign LCCs, led by Flydubai
with about a 17% share and Air Arabia with
a 10% share.
The report concludes that “rapid LCC growth
over the remainder of this decade is critical
for CAREC to achieve aspirations to improve
connectivity – within and outside the region
– and further grow tourism in the region. LCCs
generate massive economic benefits as
lower fares make air travel more affordable,
stimulating demand in both the domestic and
international markets. With higher volumes
of traffic, there are more tourists staying in
hotels, eating out, and visiting local
attractions. More passenger traffic also
supports expansion of airports and the
overall aviation ecosystem, creating jobs”.
It also points out that LCCs cannot thrive
without a supportive regulatory environment
of more-liberal open-skies policies, common
in other regions, which would ensure airlines
are always able to operate between their
home country and another country, or
between two countries, neither of which is
their home country. High airport costs are
another major impediment to LCC growth in
CAREC, as most CAREC airports have charges,
fees and taxes for international flights well
above global averages. Lower airport costs
would enable lower fares, lead to higher
volumes of traffic, and attract more LCCs.
The drop in European traffic has been more than
compensated by strong growth in the Middle East,
Southeast Asia and India, as Kazakhstan and Central
Asia became attractive destinations for many airlines.
External environment continued
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
30
Global aviation
outlook
As at 2024, the airline
industry can turn its
back on the Covid-
induced crisis.
According to IATA, over
the next two decades,
the number of global
passengers is projected
to increase at an average
annual rate of 3.8%,
leading to a net addition
of over 4.1 billion
passenger journeys by
2043 compared to 2023.
This would bring the total
global number of
passenger journeys to 7.9
billion in 2043. While the
European and North
American markets are
expected to see modest
increases in demand, the
Asia Pacific region is
forecast to record the
most significant rise in
passenger numbers,
contributing more than
half of the net increase
in global passenger
numbers by 2043, with
an average yearly
growth rate of 5.1%.
Economic expansion,
improved living
standards, and
favourable demographic
trends are expected to
contribute to this
increase.
Cargo
Global overview
In 2024, airlines moved more air cargo than
ever before, boosted by healthy cross-border
e-commerce, capacity limitations in ocean
shipping and an overall global trade in goods
that grew by 3.6% in the year. Full-year demand
for 2024, measured in cargo tonne-kilometres
(CTK), increased 11.3% from 2023 (12.2% for
international operations), exceeding the record
volumes set in 2021. In fact, December 2024
marked 17 months of consecutive growth in
demand. According to Brendan Sullivan, IATA’s
Head of Cargo: “It does appear that there has
been a structural change for the better since
the pandemic”.
Importantly, it was a year of profitable growth,
with airspace restrictions limiting capacity on
some key long-haul routes to Asia, which helped
to keep yields at exceptionally high levels, on
average 39% higher than 2019. Thus, the cargo
market provided significant support to airline
success in 2024. The sector now comprises 15.6%
of industry revenues compared with 12% in
2019. Full-year capacity in 2024, measured in
available cargo tonne-kilometres (ACTK),
increased 7.4% from 2023 (9.6% for international
operations). Average Cargo Load Factor (CLF) for
the year ended at 45.9%.
Regional variations
The market has grown across all regions and
principal routes, with most major trade lanes
experiencing growth. Within Asia, cargo trade
grew 11% year-on-year and has grown for 14
consecutive months. The Asia-North America
trade lane, the largest in cargo volume, saw an
8% annual rise in cargo demand. The Europe-
Asia corridor grew 10.3%, marking 22 months of
uninterrupted growth, with 2024 consistently in
double digits. The ‘within Europe’ route posted
a 9.1% increase, and the Europe- North America
lane grew by 5.5%. The Europe-Middle East route
saw a remarkable 26% year-on-year surge.
Trends and issues
E-commerce will represent a growing portion
of air cargo business. Currently at about 20% of
cargo business worldwide, it is expected to grow
to at least a third of all cargo shipments. By 2027,
e-commerce generally is expected to be an USD
8 trillion market, so airlines could reap a
significant reward if it can prove its speed and
transparency. Brendan Sullivan observes:
“Shippers and their customers need the goods
to travel quickly and safely, and to know where
those goods are every step of the way”. Success
will come through digitalisation, and air cargo’s
efforts here are gaining momentum, with ONE
Record, an open-source messaging standard that
replaces legacy methods. Companies must have
ONE Record in use from 1 January 2026, and
many are involved in trials at an advanced stage.
Artificial intelligence (AI) is also beginning to
replace manual processes, and can help with
the safety and speed of decisions, and so
improve productivity. IATA set up the Air Cargo
Digitalisation Leadership Charter in 2024, currently
with 17 signatories. The North Asia Digital Cargo
Alliance supports this, and IATA is working with
airlines in the region to see how ONE Record
might perform in the Chinese market, among
other matters. Digitalisation will also help the
sector’s sustainability efforts, for example by
saving paper. In addition, more-efficient use of
packaging space will make air cargo more
productive and more sustainable.
Outlook
The outlook for 2025 remains positive, given the
ongoing challenges in maritime shipping, and
with oil prices on a downward trajectory and
global trade continuing to grow. However, IATA
estimates growth will reduce to 5.8%, which
would mean revenues could reach USD 157
billion. Also, the air cargo industry will surely
be challenged to adapt to unfolding geopolitical
shifts. The threat of trade tariffs being imposed
by the US would affect the amount of goods
carried in the long term. Tariffs also need to be
seen as part of the bigger customs regulation
picture, with clearance for shipments a sector
pain point. It could be that new tariffs promote
fresh discussions, greater digitalisation, and a
speedier process. “The industry is more resilient
and adaptable than ever”, says Brendan Sullivan,
“so, whether it is geopolitical tensions, trade
tariffs or maritime cargo volatility, air cargo will
be able to respond appropriately”.
External environment continued
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
31
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The Air Astana Group is the largest airline
group in Central Asia and the Caucasus by
revenue and fleet size. We provide scheduled,
point-to-point and transit, short-haul and
long-haul air travel and cargo on domestic,
intra-regional and international routes across
Central Asia, the Caucasus, the Gulf, Europe
(including Turkey), the Middle East and Asia
(including India and China). Targeting different
regions and customer markets, our two
differentiated, but complementary, brands –
Air Astana and FlyArystan together have a
domestic market share of 68% and
international market share of 38%.
WHAT WE DO
ALL UNDERPINNED BY OUR VALUES
RESOURCES AND INPUTS
Brand and reputation
With over 20 years’ experience and major investment in
both our reputation and brands, Air Astana and FlyArystan,
the Air Astana Group has established positive brand
recognition. This translates into significant commercial value
and helps foster good relationships with our stakeholders.
Financial resources
We have demonstrated operational and financial resilience
throughout Covid, the Russia-Ukraine conflict, industry
challenges with Pratt & Whitney engine issues, and supply-
chain constraints. Through proactive management and
financial discipline, we have built an efficient cost structure
that enables our airlines to outperform most of their peers.
People and culture
Our focus on equal opportunities, training and development
helps retain and attract new employees. Through our corporate
values and promotion of a culture of recognition, we have
created a positive work environment for our 6,546 employees.
Modern fleet
We are simplifying our fleet structure by focusing on the
Airbus family. The fleet had an average age of 5.9 years at
the end of 2024. We benefit from reduced maintenance
costs, optimised fuel consumption and reduced CO
2
-
emission levels, which positions us competitively among
comparable international network and LCC carriers.
Service excellence
We are known for outstanding excellence in customer service.
In 2024, the Air Astana airline was, for the thirteenth year
running, acknowledged as the Best Airline in Central Asia and
CIS in the Skytrax World Airline Awards, and FlyArystan was for
the second time awarded best Low-Cost Carrier in Central Asia
and CIS.
Partnerships
Our partnership strategy is to expand co-operation through
codesharing and interline arrangements, to extend the reach of
our airlines and enrich our passenger offering through reciprocal
initiatives, such as loyalty programmes and benefits, and
enhanced airport services.
Hospitable We treat every person with whom we come into contact,
customer or colleague, as a guest. We are warm, friendly
and tactful, always willing to help.
Efficient We are professional people who produce high-quality
results with knowledge and style. We maximise our skills
and use our time efficiently.
Active We anticipate and respond to the needs of customers and
colleagues. We do things to the very best of our ability and
are always looking for ways to improve.
Reliable We produce reliable and consistent quality in all of our
activities. We always keep our promises.
Trustworthy We are honest people who never compromise our
integrity. Customers and colleagues can trust us.
Business model
Building strong brands and
lasting stakeholder trust
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
32
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Business model continued
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Governance
A strategy to achieve our vision
Our ambition is for the Air Astana Group to
establish a position as one of the finest airline
groups in the world. Our strategy to achieve this is
built on three key pillars: growth, efficiency and
excellence.
Maximising opportunity
Air travel between the 24 commercial airports in
Kazakhstan offers a compelling alternative to road
and rail travel across the country’s vast land mass,
and will be a significant contributor to the Group’s
future growth. Outside the borders of Kazakhstan,
we are already serving the neighbouring Central
Asia and Caucasus region, with its large
populations and developing economies. Further
afield, we now focus on less price-sensitive,
lifestyle destinations, including Georgia, Greece,
the Maldives, Montenegro, the Red Sea, Thailand,
Turkey and Vietnam.
Strong financial discipline
With operational efficiency and excellence
at its heart, we maintain rigorous financial
management, which is key to achieving one of
the lowest unit-cost performances (measured by
CASK) among both of our airlines’ international
competitors. This enables us to compete
effectively on air fares, stimulating market
demand and supporting growth in market share.
Our strong balance sheet is a source of confidence
and provides assurance to weather any crisis.
ALL UNDERPINNED BY OUR VALUES
HOW WE DO IT
We create employment and support the
development of local social and economic
infrastructures in Kazakhstan, while ensuring
we meet all relevant legislative and regulatory
requirements.
Mutual respect for our suppliers and business
partners is key to developing positive, long-term
relationships, with beneficial outcomes for all
parties.
Taxes paid in 2024
USD 102.3m
Our employees are central to the Group’s success
and we reward their loyalty and dedication by
offering competitive salary packages and
professional development, as well as providing
for their wellbeing.
The total proposed dividend of USD 38.2 million
(ordinary dividend of USD 13.0 million and special
dividend of USD 25.2million).
Percentage of purchases
from local suppliers for
2024
32%
R
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,
Investments in training
in 2024
USD 5.7m
Whether flying on our full-service or low-cost
carrier, our passengers receive the award-winning
standards of hospitality, comfort and safety we are
renowned for.
Dividends proposed
for2024
U S D 38.2m
Air Astana
CSAT Rating
for 2024
75
FlyArystan
CSAT Rating
for 2024
84
DELIVERING VALUE FOR OUR...
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
33
Strategy
Achieving
sustainable
growth
Our ambition is to establish the Air Astana Group as
one of the finest airline groups in the world. To
achieve this, our strategy is built on three pillars –
growth, efficiency and excellence – and supported by
our focus on fleet expansion, advanced technical
resources and world-leading training facilities.
Working with this strategy and focus in mind
enhances both our airlines, full-service Air Astana
and low-cost FlyArystan, which combine to offer the
widest range of growth opportunities in domestic,
intra-region and international markets.
Growth
Growth Efficiency Excellence
Building our network
As we expand our fleet, we are extending the reach of our flights
to make the most of growth opportunities across domestic,
regional and international routes. We are also adding to the
frequency of our schedules, as well as developing non-core growth
avenues such as cargo and charter.
2024 HIGHLIGHTS
Continuing fleet expansion
In July 2024, an agreement for the operating lease of seven Airbus
A321neo LR was signed with deliveries starting from 2026 – our
largest-ever single order – we are also expecting three 787-9
Dreamliners, bringing us closer to our target of 84 by 2029.
Effective yield management
The Group’s dual-brand model provides flexibility in allocating resources
to higher RASK routes. This, combined with its unique geographical
location, allows the Group to continue to balance passenger growth
with a relentless focus on operational cost efficiency, growing largely in
higher margin international routes.
Demand from developing markets
In growing aviation markets – our domestic market, Asia and the Middle
East – we experienced particularly strong demand, which we were able
to meet, again due to our unique geographical location.
Adding new services
We announced new lifestyle services to destinations in Asia, while
further boosting our presence in the Middle East and additional services
to Saudi Arabia.
2025 priorities
We plan to expend our fleet to 63 aircraft by the end of 2025. We plan
to expand our route network even further, in domestic, near-home
and adjacent international markets, and to increase density on
existing high-demand routes
Significant opportunities will continue to arise due to untapped
potential for air travel in Kazakhstan, and to growing demand in the
rest of Central Asia and the Caucasus. We also have easy access to the
megamarkets of India and China. We will make the most of all these
opportunities
AIR ASTANA GROUP Integrated Annual Report 2024
34
fulfilling our promises
Efficiency
Strengthening resources and expertise
To improve our outstanding operational efficiency yet further, we
are investing in young, modern and fuel-efficient aircraft,
expanding our in-house maintenance capabilities, enhancing our
training facilities, establishing our own Ground Services subsidiary,
and implementing new technologies across the business including
installation of a third fuel tank on the Group’s fleet of A321LR, at its
own technical facilities, which widened network capabilities and
brought new destinations within extended range.
2024 HIGHLIGHTS
Flight simulator training
The Group’s A320 Full-Flight Simulator – one of the first in Central Asia
– is currently at full utilisation. We received a second Full Flight Simulator
in February 2025, which should be commissioned by the end of the year
increasing capacity, extending operational efficiency and potentially
generating revenue from external pilot training.
Benefiting from in-house C-check operations
Air Astana covers all C-checks for the Airbus fleet, bringing many
benefits other than saving costs. It brings enhanced control over our
maintenance work and scheduling, and makes more-efficient use of the
maintenance centre. It also improves staff skills through hands-on
experience and training, as well as creating new job opportunities and
contributing to the development of Kazakhstan’s aviation industry.
Successful execution of the mitigation plan for Pratt & Whitney
engine issues
The Group recognised the Pratt & Whitney issue early and took proactive
action ahead of the wider industry, successfully implementing an
engine resting programme during the low season, performing 93
engine replacements in 2024, therefore ensuring high fleet utilisation
during peak season and reducing the impact on overall performance.
2025 priorities
Expand our internal maintenance capability with investment in
second hangar at Astana and a new hangar at Almaty airport
Commission the second Full Flight Simulator
Continue our Pilot ab-initio Cadet Programme, aiming to increase
the total intake to around 40
Continue to establish a Ground Services subsidiary, Air Astana
Terminal Services, to ensure a high-quality customer service and
manage key costs
Implement solutions for fuel consumption and reduced carbon emissions.
Implement a crew rostering pairing optimiser
Excellence
Enhancing the customer experience
We continue to review the customer experience regularly. Besides
making inflight and ground experience improvements based on
customer feedback, we launched an upgraded website, providing
a more intuitive experience for customers. We will launch a new
app in the first half of 2025. We revamped the Nomad Club
frequent flyer programme and integrated it with the new website.
We also opened our Shanyraq business lounge at Almaty
International Airport and revamped our lounge at Astana Airport.
2024 HIGHLIGHTS
Excellence recognised
In 2024, Air Astana was named by Skytrax the Best Airline in Central
Asia & CIS for the thirteenth year running and received the Best Airline
Staff Service in Central Asia & CIS award for the eighth time. Plus the
Airline Passenger Experience Association (APEX) award for Best Overall
Airline in Central Asia, and an APEX Five Star award in the Major Airlines
category. FlyArystan won the Best Low-Cost Carrier in Central Asia & CIS
award for the second time and completed a Skytrax Audit in November
2024, retaining its four-star LCC status. Air Astana Group is now a
certified ACCA (Association of Chartered Certified Accountants) Approved
Employer at Platinum level.
Exceeding passenger expectations
We also enhance the passenger experience through our use of modern
aircraft and advanced booking systems. And for us, excellence depends
on building sustainability into our business.
Committed to our ESG agenda
Our Low-Carbon Development Programme (LCDP) for 2023–2032 is
consistent with Kazakhstan’s aim to achieve carbon neutrality by 2060.
We are updating the LCDP to reflect our new commitment to achieve
net-zero emissions by 2050, and have set credible near-term targets for
the next five years. We also participated in a comprehensive research
study to assess the potential for SAF production in Kazakhstan. After
year end, we became the first airline in Central Asia and the CIS to join
IATA CO₂ Connect, and will provide operational data to enhance the
accuracy of emissions calculations.
2025 priorities
Continue to establish strategic partnerships and expand into the
neighbouring megamarket. We signed an MoU with China’s
powerhouse airline – China Southern Airlines – for codeshares across
China, Kazakhstan and, with agreement, other countries in East Asia,
Central Asia and the Caucasus
Launch the new app
Lobby for Jet-A1 production in Kazakhstan and conversion of key airports
Participate in IATA’s Integrated Sustainability Programme – Sustainable
Procurement Pilot – to enhance procurement practices and ensure they
also support environmental conservation and social responsibility
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
35
6.75
6.58
6.38
1,308
1,164
1,016
338.6
291.6
260.1
25.9
25.1
25.6
6.02
5.86
5.63
The Group is constantly reviewing initiatives and new technologies to achieve
operational cost efficiencies (referenced above in Operational Efficiency), support margin
growth and keep unit costs at a very competitive industry level. The Group’s highly
effective cost-management programme ensured only a moderate increase in full-year
CASK* of 2.7%, which was broadly offset by the growth in RASK by 2.6%. The RASK-
CASK index differential improved progressively over the quarters from negative 1.9pp
in Q1 2024 to positive 4pp in Q4, resulting in a broadly neutral RASK-CASK differential for
the year, ahead of guidance.
Group RASK* improved progressively
throughout the year, growing by 2.6% during
2024 (and 5.8% from 2022), due to proactive
capacity management at both airline brands.
Strong revenue growth over the years
resulted from proactive capacity
management through its allocation to
higher margin routes. Revenue and other
income* in 2024 increased by 12.4%
from 2023 and by 28.7% from 2022.
In 2024 Adjusted EBITDAR* increased
from 2023 and 2022 by 16.1% and 30.2%
respectively. This was a result of
proactive work early in the year to
manage industry-wide cost and revenue
pressures as well as capacity constraints.
The Group’s Adjusted EBITDAR margin
is among the highest in the industry.
The Group remains on track to meet
its medium-term expectation of a
mid-to-high 20s EBITDAR margin.
Key performance indicators
Measuring our performance
We believe that our KPIs are an invaluable tool for tracking our
performance over a three-year period, both for us as abusiness and
to give stakeholders an accurate picture ofourdevelopment.
* Excluding non-recurring items: Net IPO related expenses of USD 1.8 million in 2023/USD 12.9 million in 2024. Revenue from the extraordinary market event impacted by partial mobilisation in Russia
of USD 11.0 million in 2023. RASK adjustment of USD 4.2 million in 2024. Donations of USD 2.7 million in connection with the flood situation in Kazakhstan in 2024.
RASK (US cents)
6.75
CASK (US cents)
6.02
TOTAL REVENUE (USDm)
1,308
ADJUSTED EBITDAR (USDm)
338.6
ADJUSTED EBITDAR MARGIN (%)
25.9%
2024
2023
2022
2024
2023
2022
2024
2023
2022
2024
2023
2022
2024
2023
2022
FINANCIAL KPI’s*
fulfilling our promises
36
AIR ASTANA GROUP Integrated Annual Report 2024
19.3
17.7
15.9
83.5
82.8
82.7
57
49
43
16.1
14.6
13.2
9.0
8.1
7. 3
Higher RPK growth than ASK growth
over the years resulted in improved
load factor by 0.7 of a percentage
point in 2024.
Fleet expansion aligns with long-term
growth objectives, enabling increased
route coverage, operational flexibility,
and improved service reliability.
Stable capacity growth over the years.
Capacity continues to be allocated to
ensure achieving the highest margin
and mitigate industry-wide cost
inflation.
Growing demand in 2024 for air travel
across Kazakhstan, China and Far East,
Middle East, India.
The Group added nearly a million
passengers in 2024 and about 750,000
in 2023 with an increasing load factor,
thanks to growing demand for air
travel across Kazakhstan, our extended
home market and nearby megamarkets.
Key performance indicators continued
Link to strategy
ASK (bn)
19.3
LOAD FACTOR (%)
83.5
RPK (bn)
16.1
PASSENGERS (m)
9.0
FLEET SIZE
57
2024
2023
2022
2024
2023
2022
2024
2023
2022
2024
2023
2022
2024
2023
2022
NON-FINANCIAL KPI’s
Growth Efficiency Excellence
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
37
Our people
Overview
The expertise, dedication and skills of our workforce are vital to our
success. Recognising their importance, we provide a safe and healthy
work environment, offering competitive pay and ensuring equal
opportunities for all. We support our employees’ professional growth
through extensive training programmes and tailored development plans,
with strong business ethics and corporate values underpinning our
approach to employee wellbeing.
Material needs
►
Remuneration
►
Equal opportunities for all genders, different ages and nationalities
►
Growth and personal development
►
Training and learning opportunities
►
Safe and healthy environment
►
Wellbeing and mental health
►
Business ethics
►
Corporate values
How we engaged in 2024
►
Employee pulse surveys (to measure emotional concerns and
identify worries)
►
Management conference with YouTube broadcast for all employees
►
Team-building activities
►
Face-to-face communication with management
►
Employee Recognition Programme
►
Talents Programme
►
Internal mobile app
►
Corporate magazine
►
Performance reviews
►
Whistleblowing line for reporting violations of legislation and the
Code of Conduct
►
Feedback platform for mutual recognition among employees
Outcome of our engagement
►
In 2024, our employee engagement level was 4.02 out of
5 with a record high number of respondents – 3,071
►
The engagement ratio, which is the second most important
indicator, was 4.17 engaged employees for each actively
disengaged
Shareholders
Overview
Our relationship with our shareholders is built on a foundation of trust
and long-term collaboration, strengthened by their support for the
sustainable and steady growth of our business. We focus on increasing
the Group’s value while considering environmental, social and human
factors. As a publicly listed company on three stock exchanges, we
uphold the highest standards of disclosure and transparency, ensuring
all shareholders have equal access to the Group’s information.
Material needs
►
Financial and sustainable performance and growth
►
Transparency
►
Corporate values and business ethics
►
ESG performance
How we engaged in 2024
►
Shareholders meeting(s)
►
Attending industry сonferences and forums
►
Quarterly earnings reports and publications
►
Publications on stock exchanges
►
Presentations to existing investors
►
Conference calls and webcasts
►
Direct communication
Outcome of our engagement
►
There were five General Meetings of Shareholders in 2024.
For more information, please refer to pages 102-103
►
Our numerous engagement with capital market participants,
including existing investors and analysts allows
to keep the market updated on recent Group’s developments
Link to strategy Link to strategy
Growth Efficiency Growth EfficiencyExcellence
Sustainable resources and relationships
Understanding what matters
to our stakeholders
With all our stakeholders – whether they are affected by our operations or influence our long-term objectives –
understanding their needs and expectations is essential to sustaining our licence to operate and ensuring our continued
success. By encouraging open communication, we have built strong and trusting relationships with all our stakeholders.
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
38
Suppliers and business partners
Overview
Our network includes a diverse range of suppliers and business partners
– from innovative start-ups and small enterprises to large multinational
corporations. By maintaining an open and efficient procurement process,
and establishing mutually beneficial agreements, we have built strong,
lasting relationships with our suppliers and partners.
Material needs
►
Long-term positive relationships
►
Business ethics
►
Compliance with regulations
►
Procurement practices
How we engaged in 2024
►
Code of Conduct (Code of Ethics)
►
Direct correspondence
►
Social media
►
Website
►
Whistleblowing line for reporting violations of legislation and the
Code of Conduct
►
Visit to Maintenance, Repair, Overhaul (MRO) conferences and
industry exhibitions
►
Feedback surveys
►
ESG awards
►
Inviting core suppliers to Company events (such as new aircraft
presentations)
Outcome of our engagement
►
Flexible supply-chain processes enabled us to re-route major supplies
to comply with UK, EU and US sanctions and make sure our
operations were not jeopardised
►
Continued control of expenses and overheads within the whole
supply chain to support profitability. Monitoring of all processes and
those of freight forwarders to keep the supply chain as lean as
possible
►
We keep engaging with our strategic service suppliers to stay abreast
of trends and changes in the industry
►
Air Astana Group’s ESG awards aimed at recognising the merits of
partners in various nominations as well as raising awareness of the
Group’s ESG initiatives
Government, regulators and local
authorities
Overview
Our partnerships with government bodies, regulatory agencies and
local authorities are essential to fulfilling our operational mandate.
We contribute to national and local tax revenues while supporting
social and economic development by creating jobs and enhancing
infrastructure.
Material needs
►
Compliance with legislation and regulatory requirements
►
Compliance with the anti-corruption legislation of the Republic
of Kazakhstan
►
Business ethics
►
Safety during flights
►
Health and safety of employees
►
Sustainability
How we engaged in 2024
►
Face-to-face communication
►
Working groups
►
Direct correspondence
►
Phone calls
►
Industry conferences and forums
►
Audits
►
Reports
Outcome of our engagement
►
As part of the Interdepartmental Working Group under the Aviation
Administration of Kazakhstan, we continued implementing the
Strategic Concept for Development of Transport and Logistics
Potential of the Republic of Kazakhstan until 2030
►
We contributed to the development and modification legislation
and standards based on the best international practice
►
Protecting the Company’s interests through active engagement on
national and Eurasian-level aviation and airport infrastructure
matters
►
We achieved successful results in negotiations with South Korea,
Vietnam, China and other countries, allowing us to significantly
expand our international route network
►
Simplifying legislative procedures related to the requirement for
sanitary certificates for the entry of new aircraft into service
Link to strategyLink to strategy
Growth Growth EfficiencyEfficiency
Sustainable resources and relationships Understanding what matters to our stakeholders continued
AIR ASTANA GROUP Integrated Annual Report 2024
39
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
Passengers
Overview
Our customers are at the heart of our business. As we expand our
network and operations through our ‘Going Global’ strategy, we
continue to provide an outstanding travel experience that reflects
Kazakhstan’s unique identity while incorporating the best international
service standards. Our focus is on safety, comfort and seamless service
across every customer touchpoint – on the ground, in the air and
through digital platforms.
Material needs
►
Safety
►
On-time performance
►
High-quality services
►
Sustainability
►
Affordability
►
Availability of ticketing offices at airports and in cities
►
Accessibility
►
Enhanced digital experience through an upgraded website and app
►
Revamped Nomad Club frequent flyer programme with a
spend-based accrual
►
Ancillary services
►
In November 2024, Air Astana opened its dedicated Shanyraq
business lounge in the new terminal at Almaty International
Airport
►
Revamping of The Shanyraq business lounge at Astana Airport
which resumed welcoming customers in July
How we engaged in 2024
►
24/7 call centre
►
Digital channels like Web Chat, and an automated WhatsApp
chat-bot with live-consultant options
►
The Customer Help Centre
►
Service recovery Unit for elite Nomad Club members
►
Customer-experience evaluation surveys
►
Enhancing codeshare and interline partnerships
►
Extended inflight entertainment content
►
‘Tengri’ inflight magazine
►
Social media
►
Whistleblowing line for reporting violations of legislation and the
Code of Conduct
►
Quality and standards monitoring by Inflight Coaching team
FlyArystan keeps improving customer experience through digital
transformation:
►
Self-service kiosks iJan at all domestic airports
►
Self-service bag drop launched in Almaty airport
►
Telegram bot
►
QR stickers to collect passengers’ feedback onboard and at
boarding
►
Free podcasts, FlyArystan travel vlog and cartoons in inflight
entertainment system, FlyAndFun
►
Contact centre digitalisation, with a voice-bot independently
processing 13-15% of all calls
Sustainable resources and relationships Understanding what matters to our stakeholders continued
fulfilling our promises
40
AIR ASTANA GROUP Integrated Annual Report 2024
Outcome of our engagement
The Group remains committed to the highest levels of customer
service. In 2024, we undertook a series of initiatives to improve
services for our passengers while reinforcing our leadership in
innovating for customers. The customer experience continues to be
regularly reviewed, driven by the CXG (Customer Experience Group)
chaired by the CEO. Besides the in-flight and ground experience
improvements based on customer feedback, most notably, the
upgraded website was launched in 2024, providing a more intuitive
experience for customers. Followed by the launch of the new app in
the first half of 2025.
Benchmark research: strengthening our global identity
As part of our ‘Going Global’ strategy and ambitious network-
expansion plan, we conducted a comprehensive airline benchmark
study to ensure we continue to thrive as Kazakhstan’s flagship carrier
while integrating world-class hospitality tailored to diverse customer
profiles and route-specific needs.
Summer taskforce volunteer project: enhancing the
customer journey
For the second consecutive year, we successfully ran the Summer
Taskforce Volunteer Project, aimed at enhancing passenger experiences
during the peak travel season. This year, the project held even greater
significance, coinciding with the transition period at Almaty International
Airport – our largest hub – following the launch of its new terminal. To
ensure a smooth and seamless travel experience, 65 non-operational
employees worked as volunteers, providing around-the-clock assistance
to passengers.
Piloting the Best Airport Service Project: Raising Industry
Standards
We contributed to the Best Airport Service Project, initiated by the
Aviation Administration of Kazakhstan and piloted at Aktau International
Airport in 2024. Our customer experience and service training team led
a series of training workshops for over 70 professionals – including
passenger handling staff, border and customs control officers, police,
and aviation security teams – covering the essential skills to enhance
service efficiency and passenger interactions.
We also ran a specialist training workshop for over 30 Border Control
Officers at Almaty International Airport, teaching interpersonal
communication, customer focus and service excellence.
These initiatives reflect our desire to raise service standards across our
country’s aviation industry. We want to help shape the future of air
travel in Kazakhstan, enhancing passenger satisfaction and
strengthening our partnerships with industry authorities, service
providers and customers.
Sustainable resources and relationships Understanding what matters to our stakeholders continued
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
41
As we refine our customer-experience strategy, we continue to build on three key principles:
Meaningful experience
Creating a meaningful customer journey means going beyond
transactions to establish emotional connections through personalisation,
convenience, responsiveness and service excellence. In 2024, we focused
on ‘total experience’ as a strategic direction. This involves integrating
customer interactions with employee engagement and process
transformation to enhance loyalty and satisfaction among all stakeholders.
This approach will not only improve service quality but also increase the
efficiency of internal processes, giving us competitive advantages. We
paid particular attention to the importance of digital transformation,
simplification and optimisation, which will be key factors in the
successful development of future improvements. We will implement
advanced technologies to enhance operational efficiency and improve
the customer experience.
We aim to provide a world-class travel experience that blends
comfort, innovation and cultural authenticity. As part of this, we
embarked on a holistic product-development journey in late 2024,
setting the stage for a transformative year ahead in 2025. We will be
making comprehensive enhancements across key areas that directly
affect customer satisfaction and service quality. Sustainability and ESG
principles also remain at the heart of our strategy, as we integrate
eco-conscious practices into every aspect of our operations, from
reducing waste to sourcing sustainable products.
Measurable experience
Offering a measurable experience allows us to gain deeper insights
into our current and future customers, their needs, and their
perception of the Air Astana brand. Through regular service-quality
assessments and customer-experience surveys, we gather invaluable
feedback that informs continuous improvement.
In 2024, we expanded our onboard in-seat survey to include six
additional languages (nine languages in total), making inflight
feedback more accessible for more passengers.
Several advances in data collection and analysis, using automation
and Artificial Intelligence, have given us a more comprehensive
segmentation and understanding of customer preferences and
expectations. More importantly, the insights are systematically
communicated to all departments at all management levels, ensuring
that both strengths and areas for improvement are identified.
Sustainable resources and relationships Understanding what matters to our stakeholders continued
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
42
Measurable experience insights:
►
Air Astana achieved a net promoter score (NPS) of 41 and a
customer-satisfaction score (CSAT) of 75, based on more than
17,300 responses from our passengers. We are pleased to note
that, in this score range, we have more promoters than passives
and detractors, and these customers are loyal to us and willing to
recommend our brand to others
►
In its post-flight survey, FlyArystan covered more than 37,000
passengers in 2024. Based on the rates obtained, NPS was 32 and
CSAT was 83. Again, in this score range, the airline has more
promoters than passives and detractors, and these loyal customers
are willing to recommend our brand
►
Our Mystery Shopper project evaluated service consistency with
existing standards, helping us to objectively assess how service
quality aligns with the stated standards, and to uncover the actual
customer experience we provide
Memorable experience
A memorable journey leaves a lasting impression – through outstanding
service, surprising moments of delight, and a commitment to
exceeding expectations. As we continue to grow, we will keep
providing an exceptional customer experience, based on listening to
our customers, developing new and improved services and products,
and maintaining the highest industry standards.
In 2024, Air Astana and FlyArystan received several prestigious
awards, recognising our exceptional service:
►
Air Astana is rated a 4-Star Airline by Skytrax
►
Air Astana was awarded Best Airline in Central Asia and CIS at the
Skytrax World Airline Awards, for the thirteenth year running
►
Air Astana was recognised as a Five Star Major Airline by APEX at a
ceremony in California, marking the fifth time in seven years the
airline has received this distinction
►
Air Astana secured 38th position in the World’s Top 100 Airlines list,
underscoring its global reputation for quality and service
►
Air Astana received Best Airline Staff Service in Central Asia and CIS
for the eighth time, reflecting the dedication and professionalism
of its team
►
FlyArystan is rated a 4-Star Low-Cost Airline by Skytrax
►
FlyArystan was awarded Best Low-Cost Airline in Central Asia and CIS
at the Skytrax World Airline Awards, for the second consecutive year
Sustainable resources and relationships Understanding what matters to our stakeholders continued
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
43
Key projects and initiatives
Simplifying processes and improving communication with
passengers
We have digitised the way we handle passenger complaints, by
offering passengers information sheets with a QR code, so they can
complete an online claim for missing or damaged baggage, or
personal belongings left onboard, among other issues.
Our Lost & Found staff are available to help passengers in the airports
of Almaty, Astana, Atyrau, Aktau, Uralsk and Shymkent. Also, in
Almaty, Astana and Shymkent, we offer home delivery of baggage.
We have set target customer-satisfaction ratings (CSAT) at 80 for both
airlines. These improvements will influence our CSAT score for the
post-flight experience, where 85% of passengers report satisfaction
for baggage handling.
FlyArystan AOC
As at 1 April 2024, FlyArystan has operated under its own AOC. This
enables the brand, which previously operated under the Air Astana AOC,
to align operations more effectively with its LCC model and pursue
additional growth opportunities with its own IATA code (FS). FlyArystan
remains a wholly owned subsidiary of the Air Astana JSC.
FlyArystan’s Low-cost Travel Vlog
In 2024, FlyArystan introduced the Low-cost Travel Vlog on YouTube,
showing people how to travel more easily the low-cost way. The vlog
is proving a popular way of communicating, promoting destinations in a
friendly, inspiring style while educating viewers about the low-cost model.
New international terminal in Almaty
The new International Terminal at Almaty airport was inaugurated
on 31 May 2024. This has tripled the terminal area, increasing annual
capacity at the airport from 8 to 14 million passengers per year. The
new terminal resolves the capacity bottleneck at the Group’s main
base and provides additional capacity for further growth in the future.
Sustainable resources and relationships Understanding what matters to our stakeholders continued
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
44
Sustainable resources and relationships Understanding what matters to our stakeholders continued
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
45
AIR ASTANA GROUP Integrated Annual Report 2024
As global challenges evolve, sustainability remains a
fundamental part of our corporate strategy. We acknowledge
the importance of balancing business growth with
environmental responsibility by reducing our carbon footprint,
as well as contributing positively to the communities we
serve. Throughout 2024, we maintained a strong focus
on environmental stewardship, prioritising fuel efficiency,
technological advancements and sustainable practices.
These efforts have not only improved our operational
performance, but have also strengthened our commitment
to sustainable aviation. Our commitment to reducing
environmental impact is evident in our exploration of
alternative energy sources and the implementation of
fuel-efficient flight strategies.
Beyond operational initiatives, we work with employees,
partners and stakeholders to cultivate a culture of
sustainability and environmental responsibility. Through
awareness programmes and educational efforts, we strive
to inspire positive changes within and beyond our airline.
In collaboration with business partners and regulatory
authorities, we completed research into the feasibility
of producing and using SAF in Kazakhstan. The study
confirmed that SAF can be produced locally, but that
successful integration requires collaboration among
airlines, fuel producers, airports, government bodies and
regulators. A unified approach will be key
to advancing adoption of SAF, supporting sustainable
aviation in Kazakhstan and beyond.
In December 2024, Air Astana Group held the ESG awards
ceremony, which recognised through a variety of nominations
the partners who help us implement ESG principles,
as well as raising awareness of our ESG initiatives.
Air Astana became the first airline in Central Asia and the
CIS to join IATA CO₂ Connect, and will provide operational
data to enhance the accuracy of CO
2
emissions calculations,
contributing to the industry’s commitment to achieving
net-zero carbon emissions by 2050.
In 2025, Air Astana will be participating in IATA’s Integrated
Sustainability Programme (ISP) – Sustainable Procurement
Pilot. By joining this programme, we aim to enhance our
procurement practices, ensuring they support not only
economic efficiency but also environmental conservation
and social responsibility. This step is part of our broader
strategy to achieve net-zero emissions by 2050.
Our achievements over the past year reflect our ongoing
commitment to sustainability. We remain focused on
innovation, seeking forward-thinking solutions and
collaborations that will help us progress further. For us,
building a sustainable future is more than a goal – it is
a responsibility we embrace with determination.
Sustainable resources and relationships
Sustainable growth
We recognise the significant impact our operations have on the
environment, and aim to minimise this to support a sustainable
future for the aviation industry.
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
46
Air Astana GROUP Integrated Annual Report 2024 continued
Our six priority
UN SDGs
Sustainable resources and relationships Sustainable growth continued
Our approach to sustainability
The Air Astana Group aims to become the leading
environmentally sustainable and socially responsible
airline in the CIS and Central Asia. To mitigate
the impact of our operations on the environment
and the communities we serve, we adopt a
comprehensive sustainability strategy. This
includes reducing emissions, managing waste
efficiently, conserving vital resources such as
energy and supporting local communities.
ESG Strategy
We continue to implement our comprehensive ESG
Strategy, covering 2023-2032, which is aligned with
international best practices and standards. It builds
upon our existing and planned sustainability
initiatives while aligning with the United Nations’
Sustainable Development Goals (SDGs). We
identified six key SDGs as priorities: Quality
Education (SDG 4), Gender Equality (SDG 5), Decent
Work and Economic Growth (SDG 8), Reduced
Inequalities (SDG 10), Climate Action (SDG 13), and
Partnerships for the Goals (SDG 17).
By focusing on these specific SDGs, our ESG
Strategy is both targeted and impactful, addressing
the unique challenges and opportunities within
the aviation industry. While these six SDGs are our
primary focus, we recognise the importance of all
17 SDGs in achieving a sustainable future. Our
strategic approach ensures we concentrate our
efforts where they align most closely with our
operations and where we can be most meaningful.
Low-Carbon Development
Programme (LCDP)
Our LCDP for 2023–2032 establishes clear goals for
reducing greenhouse gas (GHG) emissions, and is
integrated into our broader ESG Strategy. It aligns
with Kazakhstan’s commitment to achieving carbon
neutrality by 2060. A key component involves
phasing out older Airbus aircraft and moving to
new-generation A320 and A321neo models, which
Airbus reports can reduce fuel consumption and CO₂
(NO
X
) emissions by up to 20%, while also cutting
aircraft noise by 50% compared with previous-
generation A320ceo aircraft.
We have already made significant progress in
reducing our CO₂ emissions per revenue passenger
kilometre (RPK), decreasing from 0.122 in 2016 to
0.078 in 2024, a 36% reduction. This compares
favourably with international network carriers and
low-cost airlines.
In 2024, the Air Astana Group revised its net-zero
commitment, moving its target from 2060 to 2050
in alignment with the global aviation industry’s
goals, rather than Kazakhstan’s national target.
Following this decision, we recognised the need to
update the LCDP accordingly, and began this work
in 2024. It now incorporates a structured
decarbonisation roadmap with near-term targets
for the next five years.
These targets will be independently verified,
ensuring alignment with the Paris Agreement’s
climate mitigation objectives. Additionally, in
accordance with the Association of Asia Pacific
Airlines’ (AAPA) resolution, we have committed to
achieving at least 5% SAF blending by 2030,
subject to market availability.
The ESG Strategy’s
Action Plan includes
short-, medium- and
long-term initiatives
that target:
Addressing
environmental and social
concerns in a proactive
and transparent manner
Providing a systematic
approach to managing
ESG issues
Providing measurable
and understandable data
to investors
Complying with
international
requirements for
sustainable development
Monitoring the ESG
agenda
Long-term financial
wellbeing
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
47
Sustainability governance
The Board of Directors holds ultimate
responsibility for the Group’s sustainable
development and entrusts the ESG Committee
with overseeing ESG-related risks and issues.
When ESG matters overlap with other areas,
the ESG Committee collaborates with relevant
Board Committees, such as the Audit
Committee on ESG risks and the Nomination
and Remuneration Committee.
Day-to-day ESG accountability falls to the CEO,
while the Sustainability Department oversees
the development and execution of
sustainability objectives. Implementing
specific initiatives is further delegated to
department heads.
The Group’s strategic development and
decision-making processes are guided by key
sustainability principles, including
transparency, accountability, ethical conduct,
stakeholder engagement, fairness, respect for
human rights and a zero-tolerance policy
towards corruption. These principles are
integrated into our risk management, strategic
planning, human-resource management,
investment decisions, reporting and overall
operations, ensuring a responsible and
sustainable approach to business.
AUDIT
COMMITTEE
Reviews ESG-related financial information and
disclosures, ensures ESG risks are effectively
integrated into the risk management system,
and oversees the whistleblower mechanism
for reporting any violations or concerns related
to ESG practices.
ESG
COMMITTEE
Is responsible for overseeing all ESG-related
matters, providing recommendations to the
Board on the development and approval of
ESG Strategy, as well as assessing and
evaluating its implementation.
SENIOR
MANAGEMENT TEAM
Implements the sustainability
principles, ensures stakeholder
engagement plans are in place,
and oversees the advancement
of sustainability initiatives.
SUSTAINABILITY
DEPARTMENT
Oversees the development and
execution of sustainability
objectives, while implementing
the initiatives is assigned to
department heads.
DIVISIONAL HEADS OF
BUSINESS AREAS
Develop and implement
initiatives.
NOMINATION AND
REMUNERATION COMMITTEE
Ensures the remuneration policy and
practices are structured to align with the
ESG Strategy and lead to long-term
sustainable success.
Sustainable resources and relationships Sustainable growth continued
BOARD OF DIRECTORS OF AIR ASTANA
The Board is taking ultimate responsibility and providing
oversight of management actions. The Board receives
quarterly updates on ESG matters.
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
48
Sustainability risks
The ESG Committee is responsible for all
aspects of ESG risk management, implemented
through the Risk Management Policy. This
policy is based on international best practices
and aligns with the COSO Enterprise Risk
Management framework – Integrating with
Strategy and Performance. It is implemented
across the business through our Corporate Risk
Management System (CRMS). The CRMS key
to governance, performance management
and internal controls, as well as to minimising
risks to sustainability, resilience and agility.
This is vital in helping us adapt to fluctuating
business situations by mitigating negative
outcomes. During 2024, we paid particular
attention to ESG and climate-related risks
during our standard risk identification and
assessment process. You can find full details of
our climate-related risks and opportunities in
the TCFD section on pages 188-195.
Materiality
Having carried out our initial materiality
assessment in 2020, in 2023, we updated our
list of material topics, not requiring any changes
to remain aligned with our ESG Strategy.
Following the Group’s IPO in 2024, we carried
out an additional materiality assessment to
ensure alignment with evolving stakeholder
expectations and market requirements. This
update reaffirmed the relevance of our
existing material topics while strengthening
our focus on transparency and long-term
value creation.
The assessment involves a comprehensive
analysis of external and internal resources,
including an online survey, reviewing peer
company reports, analysing publications, and
considering global megatrends. We identified
20 topics as most important to both the
Group and its stakeholders, as shown in the
table, alongside how these topics align with
our ESG Strategy priorities and current status.
Ethics and compliance
The sustainable development of our business
is based on the principles of openness,
accountability, transparency, ethical behaviour,
justice, respect for human rights and zero
tolerance for corruption. We operate our
business with integrity, promoting a culture
of ethical behaviour and compliance through
our HEART (Hospitable, Efficient, Active,
Reliable, Trustworthy) and CHARM (Creative,
Happy, Agile, Reliable, Modern) values in Air
Astana and FlyArystan, respectively. This
approach has helped us foster longstanding
and trusted relationships with our clients and
business partners.
Recognising the new status of Air Astana JSC
as a listed company (KASE, LSE and AIX) and
the importance of proactive risk management,
the Board of Directors approved a strategic
reorganisation of the Compliance and
Sustainability Department in June 2024.
This resulted in the establishment of an
independent Compliance Service within Air
Astana Group. This move signifies the Board
of Directors’ continued dedication to fostering
a strong compliance culture and mitigating
potential risks associated with ethical conduct
and regulatory adherence.
Our ethics and compliance framework
includes these key policies:
►
Code of Conduct
►
Speak-Up Policy
►
Anti-Corruption Policy
►
Policy for Prevention and Resolution of
Conflicts of Interest
►
Corporate Fraud Prevention Policy
The Compliance Service provides the Board
of Directors and Audit Committee with
quarterly reports on all activities related to
these policies.
The Group online Code of Conduct training is
an integral part of mandatory induction course
for all new employees. 488 employees
successfully completed Code of Conduct
training online in 2024, which included
sections on anti-corruption practices.
Of these participants, 475 were based in
Kazakhstan, while 13 were stationed at
international locations. Anti-corruption
training sessions (both in person and online)
were conducted by the Compliance Service
for 80 FlyArystan employees.
In October 2024, the Compliance Service
conducted specialised training for the
Recruitment team of the Human Resources
and Administration Department, on preventing
conflicts of interest at the recruitment stage.
17 recruiters participated, gaining both
theoretical knowledge and practical insights
into identifying and mitigating potential
conflicts of interest. To reinforce the key
principles covered, the Compliance Service
formalised them into the guidelines, providing
the team with a practical tool for daily use.
Sanctions compliance
In light of UK, EU and US sanctions related to
Russia, the Group implemented a multi-
faceted approach to compliance. This involved
continuous monitoring of sanctions updates
and manual screening of counterparties and
their banks for potential exposures. In 2024,
we issued a revised edition of the Sanctions
Policy, to ensure ongoing compliance with the
latest international sanctions regulations. This
provided specific instructions for Group
departments, and detailed guidance for
employees, on identifying sanctioned entities
and goods. The Compliance Service role
extended beyond sanctions compliance to
include examining, evaluating and mitigating
a wider range of compliance risks by
conducting thorough due diligence on
third-party relationships. We complement this
broader compliance effort with the revised
Know Your Customer (KYC) form, which now
includes more comprehensive due diligence
on shareholder structure, company officials,
conflict of interest assessments, sanctions
compliance, anti-corruption measures, and
adherence to the UK Modern Slavery Act 2015.
A total of 5,029 Air Astana Group employees
have been made familiar with the restated
Sanctions Policy. This equips them with
necessary skills to more effectively identify
red flags and potential violations, enabling
proactive mitigation of sanctions-related risks.
Sustainable resources and relationships Sustainable growth continued
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
49
Sustainable resources and relationships Sustainable growth continued
Reinforcing a compliance
culture
Whistleblowing channels
Recognising the importance of proactive
prevention and early detection, we maintain
a comprehensive whistleblowing facility
(Hotline) open to employees, customers,
business partners and other stakeholders.
This serves as a crucial mechanism for
reporting potential instances of fraud,
corruption, discrimination, unethical
behaviour and other breaches related to our
operations. To guarantee confidentiality and
anonymity, the independent external
operator processes all reports received from
multiple reporting channels. The Hotline
accommodates reports in Kazakh, English
and Russian languages. Actionable reports
are then directed to the Compliance Service
for further investigation, facilitating the
timely identification and remediation of any
regulatory or Code of Conduct infringements.
The Group whistleblowing channels
functioned effectively in 2024, supporting the
reporting of concerns, all of which were duly
processed by Compliance Service, with major
cases communicated to the Board of Directors.
None of these concerns were deemed
critical, demonstrating the maturity of our
governance framework and proactive issue
resolution. This reflects our commitment to
maintaining a culture of transparency and
ethical conduct.
As part of its ongoing commitment to ethical
conduct and transparency, the Compliance
Service launched a comprehensive campaign
in Q3 2024 to increase employees’ awareness
of available whistleblowing channels. The
initiative involved deploying monthly
screensavers for one week on all computers,
prominently displaying the Hotline contact
information, and emphasised the 24/7
availability of anonymous reporting, as well
as posters around Company premises.
Whistleblowing Handbook
In Q4 2024, we introduced the Whistleblowing
Handbook to support the Speak-Up Policy
and further promote ethical conduct. This
document establishes clear and consistent
processes for handling all whistleblowing
reports, ensuring transparent investigation
and appropriate action.
It equips the Compliance Service with
practical procedures for receiving, analysing,
categorising and reporting on whistleblowing
activity and its overall system performance.
The Handbook also outlines measures to
ensure the thorough review and analysis of
all reports, considering their significance,
potential risks and available resources.
Crucially, it provides safeguards to protect
whistleblowers from retaliation, fostering a
safe environment for raising concerns.
Annual assessment of corruption risks
In Q4 2024, the Compliance Service
conducted an annual corruption risk
assessment, as mandated by Kazakhstani
anti-corruption legislation. This scrutinised
operational activities in all departments with
inherent corruption risks, with a specific focus
on vulnerable business processes such as
procurement, finance, recruitment and
corporate governance. This assessment,
based on the methodology outlined in the
Risk Management section of this report,
covered 77 top and middle managers.
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
50
Sustainable resources and relationships Sustainable growth continued
The results categorised the majority of
corruption risks within Group operations as
‘very low’ to ‘low’. Furthermore, the
assessment process included briefings on
relevant anti-corruption legislation and
policies, ensuring understanding and
consistent implementation of the anti-
corruption framework at all levels.
In our commitment to transparency and
ethical conduct, in 2024, there were two
reported and confirmed incidents of petty
corruption related to misappropriating fees
from extra services charged at the airport
and upgrade of passengers to business class
for financial reward. In line with our
zero-tolerance policy towards corruption and
our dedication to uphold the highest
standards of integrity, the employees
involved were either dismissed or subject to
disciplinary action.
It is noteworthy that during the reporting
period there were no instances where
contracts with business partners were
terminated or not renewed due to violations
related to corruption.
Annual Declaration of Conflict of Interest
As part of our commitment to effective risk
management and ethical governance, we
require all employees to declare potential
conflicts of interest at the recruitment stage,
when changing roles, or when personal
circumstances change. This process is
automated for ease of use and efficiency.
In October 2024, the Compliance Service
launched the Annual Declaration of Conflict
of Interest (CoI) for Air Astana employees and
members of the Board of Directors, as
mandated by the revised in Q3 2024 Policy
for Prevention and Resolution of Conflicts of
Interest. By year end, 5,396 of employees
had completed their declarations, indicating
a strong culture of compliance and proactive
risk identification. The Compliance Service
will finalise its analysis of the CoI declarations
in Q1 2025 and present its findings to the
Board of Directors.
Customer privacy
The Group is committed to safeguarding
customer privacy, recognising the critical role
of data protection in the aviation industry.
We collect personal data for specific,
legitimate purposes, including ticket booking,
baggage handling, the provision of benefits
for Nomad Club members, and regulatory
compliance. Customers are informed about
data-processing activities, and we apply
consent mechanisms in accordance with the
Law of the Republic of Kazakhstan On
Personal Data and Its Protection and relevant
international privacy legislation. We collect
only the necessary data, ensuring personal
information is relevant and not excessive. To
protect passenger data from unauthorised
access and breaches, we employ security
measures, including encryption, access
controls and regular information security
audits. Our focus on data security and
compliance led to continued enhancements
of our privacy framework in 2024, and we
observed no evidence of customer privacy
being compromised.
AIR ASTANA GROUP Integrated Annual Report 2024
51
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
Sustainable resources and relationships Sustainable growth continued
Priorities and main initiatives of the ESG Strategy
Priority area and material issues
Related
SDGs Commitments
1
Status update
Environmental impact management
►
Energy (Read on page 56)
►
Emissions (Read on page 56)
►
Waste management (Read on page 57)
►
Environmental compliance (Read on page 58)
13, 17 Medium-term initiatives
►
Develop an Environmental Policy
►
Develop a cabin-waste management programme
►
Implemented
►
In progress
Reduction of greenhouse gas emissions
►
Emissions
13, 17 Short-term initiatives
►
Reduce CO
2
emissions in accordance with the LCDP
►
Conduct research independently or in co-operation with local or
international organisations on the possibility of producing and using
SAF in Kazakhstan
Medium-term initiatives
►
Feasibility analysis on launching a programme under a carbon
offsetting mechanism
Long-term initiatives
►
Calculate Scope 3 indirect GHG emissions
►
Achieve the GHG emission-reduction target by 2032, in line with the LCDP
►
In progress
►
Implemented
►
In progress
►
In progress
►
In progress
Corporate social responsibility 10 Long-term initiatives
►
Increase the annual volume of financial resources allocated for charity
►
Ensure an increase in the number of cities covered under the programme
for the socio-economic development of regions and the local community
►
In progress
►
In progress
Human rights
►
Employment (Read on pages 63-66)
5, 8, 10 Short-term initiatives
►
Develop a Human Rights Policy in line with the International Bill of
Human Rights
►
Make a statement about Modern Slavery
►
Develop a policy to counter gender inequality and harassment within
the Group, as well as an employee-grievance mechanism to address
labour issues and gender-based violence
►
Develop a Sexual Harassment Policy
►
Develop a policy to support freedom of association and workforce
diversification
Medium-term initiatives
►
Develop a Diversity, Equity and Inclusion (DEI) Policy
►
Implemented
►
Implemented
►
Implemented
►
Implemented
►
Implemented
►
In progress
Health and Safety practices
►
Occupational health and safety
(Read on pages 59-60)
►
Aviation safety management systems
(Read on pages 61-62)
8 Medium-term initiatives
►
Develop a policy for the safe operation of ground transport
Long-term initiatives
►
Ensure a reduction in the total accident rate (TAR) per 1,000 employees
annually – 3.8 by 2025, 3.7 by 2026, 3.6 by 2027
►
Increase the number of behavioural observations (BO) – 250 by 2025,
300 by 2026, 250 by 2027
►
Implemented
►
In progress
►
In progress
1
The timeframe used equates to: Short - 1 year (2024), Medium - from 2025 to 2027, Long - from 2028 to 2032
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
52
Priority area and material issues
Related
SDGs Commitments
1
Status update
Human-resource management
►
Employment
►
Training and development
(Read on page 67-70)
4, 5, 8, 10 Medium-term initiatives
►
Conduct ESG training for employees
►
Conduct ESG training for the Company’s Board of Directors and
top management
►
Ensure the availability of a certified GRI specialist
►
Ensure the availability of a certified professional responsible for
disclosing information on climate risk management
Long-term initiatives
►
Support the annual increase in the number of employees with
disabilities recruited
►
Reduce staff turnover to 10% from 12%
►
Implemented
►
Implemented
►
In progress
►
In progress
►
In progress
►
In progress
Product safety and quality
►
Innovation and digitalisation
(Read on pages 82-92)
►
Service quality (Read on pages 82-92)
►
On-time flight performance
(Read on page 82-92)
►
Fleet technological improvements (Read on
pages82-92)
8 Long-term initiatives
►
83%-85% On-time performance (OTP)
►
In progress
International ESG maturity assessment 17 Medium-term initiatives
►
Receive an ESG rating
►
Disclose information according to the Climate Disclosure Project
(CDP) climate questionnaire
►
In progress
►
In progress
Maturity of ESG reporting practices 17 Short-term initiatives
►
Develop the sustainability part of the Integrated Report in
accordance with the updated GRI standard (2021)
►
Update the materiality assessment
►
Integrate priority SDGs into reporting practices
►
Verify the sustainability section of the Integrated Report by an
independent party (annually)
Medium-term initiatives
►
Devise standard preparation procedure for the developing the
sustainability section of the Integrated Report as well as the ESG
data-collection system
►
Ensure compliance of information disclosure with the
recommendations of stock exchanges (KASE/AIX/LSE)
►
Ensure corporate governance disclosures comply with MSCI and
Sustainalytics recommendations
Long-term initiatives
►
Disclose information in accordance with the SASB industry
standard for aviation
►
Implemented
►
Implemented
►
Implemented
►
Implemented
►
In progress
►
Implemented
►
In progress
►
In progress
Climate change risks
►
Emissions
►
Environmental compliance
17 Short-term initiatives
►
Conduct an initial disclosure of information on climate-risk management
in accordance with the TCFD
Medium-term initiatives
►
Information disclosure on climate-risk management improved in
accordance with the TCFD recommendations
►
Integrate climate risks into the corporate risk register, business
strategy and financial plan of the Group
►
Implemented
►
Implemented
►
Implemented
Supply chain
►
Procurement practices (Read on page 71)
10, 13, 17 Long-term initiatives
►
Develop and approve the Supplier Code in relation to ESG
►
In progress
1
The timeframe used equates to: Short - 1 year (2024), Medium - from 2025 to 2027, Long - from 2028 to 2032
Sustainable resources and relationships Sustainable growth continued
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
53
Priority area and material issues
Related
SDGs Commitments
1
Status update
Ensuring data privacy
►
Customer privacy
(Read on page 51)
8 Medium-term initiatives
►
Obtain certification in for the management and protection of personal data –
ISO 27701
Long-term initiatives
►
Initiate and ensure the implementation of initiatives aimed at improving the
privacy of personal data
►
In progress
►
In progress
Corporate governance
►
Corporate governance
(Read on page 98)
►
Ethics and compliance
(Read on pages 49-51)
8 Short-term initiatives
►
Develop a policy or statement about political neutrality
Medium-term initiatives
►
Align the composition of Board of Directors with the best international ESG
practice (for example: MSCI)
►
Implemented
►
In progress
Strategic management
►
Strategy (Read on page 34)
►
Economic performance
(Read on page 182)
►
Passenger turnover
(Read on page 14)
8 Short-term initiatives•
►
Initiate revisions of the ESG Strategy implementation plan regularly, to take
account of changes in the external and internal environment
Medium-term initiatives
►
Integrate the essential SDGs into strategic planning
Long-term initiatives
►
Approve the ESG Strategy for the period 2033–2060
►
Implemented
►
In progress
►
In progress
Stakeholder engagement
►
Stakeholder engagement
(Read on pages 38-44)
17 Short-term initiatives
►
Develop an ESG section on the website
►
Consider joining local associations/international ESG communities
►
Consider the possibilities of developing co-operation with partners
►
Develop a stakeholder engagement plan
Medium-term initiatives
►
Develop an initiative for interaction between top management
and employees
Long-term initiatives:
►
Ensure an increase in the number of joint sustainable development
projects with partners and stakeholders
►
In progress
►
In progress
►
In progress
►
In progress
►
In progress
►
In progress
1
The timeframe used equates to: Short - 1 year (2024), Medium - from 2025 to 2027, Long - from 2028 to 2032
Sustainable resources and relationships Sustainable growth continued
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
54
Approach
We aim to reduce our environmental impact and develop
initiatives to avoid or reduce man-made climate change. We
have invested significantly in developing our environmental
protection management system following best practice local
and international standards. Through this, we are better able to
make efficient use of resources, to control and monitor the
impact of our activities.
Our Low-Carbon Development Programme (LCDP) for 2023–2032,
which is part of our ESG Strategy, outlines clear objectives for
reducing greenhouse gas (GHG) emissions. While originally
supporting Kazakhstan’s national goal of carbon neutrality by
2060, we revised our commitment in 2024, accelerating our
net-zero target to 2050 in line with the ICAO Assembly goal.
This shift prompted a comprehensive update of the LCDP, which
began in 2024 to reflect our enhanced ambition.
We encourage the efficient use of resources in our offices and in
flight. Our fuel-efficiency procedures optimise jet fuel use and
minimise GHG emissions. We regularly communicate about our
operations and emissions to underline the importance of
environmental responsibility to the business. We also involve
employees in environmental initiatives to raise their levels of
awareness. We incorporate various aspects of our ESG agenda
into employee ESG training.
Emissions
Air travel contributes to the accelerating climate change by
releasing GHGs. We aim to reduce carbon emissions classified as
either direct (Scope 1) or indirect (Scopes 2 and 3) under the
Greenhouse Gas Protocol. Scope 1 are GHG emissions from sources
we own or operate. Indirect emissions are emissions that result
from our activities but are emitted from sources owned or
controlled by another company.
2024 highlights
Conducted analysis of
physical climate risks
and transitional climate
risks
Compliance with the
requirements of the
Ecological Code of the
Republic of Kazakhstan
Internal auditors for
occupational health
and safety completed
training on the ISO
14001 Environment
management systems
standard
Air Astana has been
enhancing sustainability
across inflight products
by reducing plastic
waste, using eco-
friendly packaging, and
changing to recyclable
and biodegradable
materials
FlyArystan launched
onboard sales of
shopping bags made
from repurposed expired
life vests as part of a
charity programme
Material issues
►
Energy
►
Emissions
►
Effluents and waste
►
Environmental compliance
Guidelines we follow
Republic of Kazakhstan
legislation:
Ecological Code 2021; Directive
2003/87/EC, Law No. 588 ‘On
electric power’ (9 July 2004);
Order of the Minister of Energy
No. 230 ‘On approval of the
rules for the installation of
electrical installations’ (20
March 2015); Order of the
Minister for Investments and
Development No. 406 ‘On
establishing requirements for
the energy efficiency of
buildings, structures and their
elements’ (31 March 2015).
Other
Health, Safety and
Environmental Protection
Policy; TCFD; ICAO Annex 16,
Volume IV CORSIA.
Sustainable resources and relationships
Environment
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
55
In addition to continuously monitoring our
GHG emissions, our efforts to reduce them
include safely increasing fuel efficiency,
making technological improvements, and
using fuel-efficient aircraft that emit less CO
2
.
We also use operational methods such as
route planning, reducing aircraft weight and
training pilots in fuel-efficient flying.
Scope 1 direct emissions constitute the
majority of the Group’s total GHG emissions,
mainly from the combustion of jet fuel. We
have developed CO
2
Emissions Monitoring and
Reporting Instructions that prescribe how we
account for this.
We comply with the following CO
2
monitoring
schemes, with emissions verified by an
independent environmental accredited
verification, certification and auditing body:
►
EU ETS – European Union Emission Trading
Scheme (includes all flights within the
European Union)
►
CORSIA – Carbon Offsetting and Reduction
Scheme for International Aviation
(includes international flights)
Emission factors and global warming potential
(GWP) rates are applied from methodologies
of the EU ETS and CORSIA frameworks. The
Group applies the operational control approach
to consolidate GHG emissions.
Currently, Air Astana Group accounts for
Scope 1 and Scope 2 GHG emissions, and will
report Scope 3 emissions from 2025. Our
LCDP for 2023–2032 sets targets for minimising
CO
2
emissions from our operations, and we
have updated it this year, with a goal of
attaining net zero by 2050.
As fuel combustion is such a major contributor
to our direct emissions, we worked with the
European Bank for Reconstruction and
Development (EBRD) and KazMunaiGas to
research the potential for producing and using
SAF in Kazakhstan.
We are also closely monitoring industry
standards, trends and stakeholder demands
since the future use of SAF may be mandated
for arrivals and departures by certain
countries. Aligning with recent Association of
Asia Pacific Airlines resolution, we will aim for
5% SAF blending by 2030 and incorporate this
into the updated LCDP.
GHG emissions
An increase in both domestic and international flights in 2024 inevitably alsoled to an overall
increase in our CO
2
emissions – by 12%. The slight increase in RPK and ASK CO
2
emissions
intensity is associated with the updated coefficient of CO
2
emissions calculation. However, we
still contribute to aircraft modernisation, route optimisation and various pilot techniques to
reduce fuel consumption and CO
2
emissions.
2024 2023 2022
CO
2
emissions intensity (tonnes CO
2
per RPK)
1
0.078 0.076 0.077
CO
2
emissions intensity (tonnes CO
2
per ASK)
1
0.065 0.063 0.064
Scope 1 GHG emissions (tonnes of CO
2
)
1,252,773 1,115,142 1,015,507
2
Company-specific metric (seat kilometres) 19,322,854 17,689,651 15,921,347
Company-specific metric (revenue kilometres) 16,128,485 14,646, 227 13,159,168
1
The intensity ratio includes only Scope 1 emissions.
2
544,621 tonnes of CO
2
were verified by VERIFAVIA (Singapore) Pte Ltd on international flights only.
The total volume of direct emissions of greenhouse gases and other pollutants into
the atmosphere from other sources owned by the Group
Pollutants 2024 2023 2022
Sulphate oxides, tonnes 4.39 3.96 3.17
Nitrogen oxides, tonnes 10.58 9.68 8.39
Hydrocarbons, tonnes 2.63 2.44 2.16
Carbon oxides, tonnes 13.03 11.63 9.22
Other substances, tonnes 0.11 1.61 11.06
Particulate matter (PM)
2024 2023 2022
Particulate matter 1.03 1.51 0.21
Emissions of greenhouse gases and other pollutants are categorized and reported in line with
the Ecological Code of the Republic of Kazakhstan, using nationally approved calculation and
reporting methodologies.
The main source of the Group’s indirect greenhouse gas emissions is the consumption of
purchased electricity and heating, which does not make a significant contribution to the
Group’s overall emissions. The total volume of Scope 2 GHG emissions is 5,120 tonnes.
Energy
The total energy consumption of the Group in 2024 was 17,181 thousand GJ. This includes
aviation fuel, diesel, heating, electricity and other. Calculations of energy consumption are
based on methodologies aligned with the Intergovernmental Panel on Climate Change (IPCC)
Guidelines. Conversion factors for each energy source are derived from IPCC and internationally
recognized standards to ensure accuracy and consistency.
While we do not currently use renewable energy, we are looking at alternative energy
resources, in particular, we will study in detail the possibility of converting the heating of the
aviation technical centre in Astana to gas rather than diesel fuel.
Energy consumption
2024 2023 2022
Electricity (GJ) 15,473 14,958 11,282
Heating (GJ) 6,803 28,615 16,130
Sustainable resources and relationships Environment continued
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
56
Waste management
The Group’s waste-management programme
is based on reduction, recycling and disposal,
using third parties as necessary. By involving
employees and customers in initiatives to
reduce and recycle waste, we have helped
raise awareness and increase such activity,
both on our aircraft and in our offices.
As part of its waste reduction efforts during
flights, Air Astana has integrated its in-flight
entertainment program (IFE), KCTV, into its
onboard magazine, Tengri. Previously, the
KCTV program was published as a separate
printed guide. However, in an effort to
optimise costs and reduce the volume of
printed materials, it has now become an
integral part of the main magazine. Copies of
this are available in seat pockets without any
plastic packaging. Since 2020, we have used
biodegradable materials for inflight products,
including switching from plastic to wood for
drink stirrers, replacing onboard cups with
recyclable cups, using paper bands instead of
plastic bags for blankets, and packing most
of our amenity kits in bamboo and paper. We
are also encouraging onboard teams and
passengers to think about waste. We
encourage passengers to use our MyPress
service, which offers a wide range of
newspapers and magazines in various
languages and helps reduce the number
of paper copies onboard.
We have launched several recycling
initiatives, including safe disposal of PET
bottles and used batteries, and using
wastewater to wash wheels and brakes.
By embracing digitalisation, we have also
reduced the volume of paper we use. We
have developed social projects linked to
waste management to raise awareness
among all stakeholders.
We also began Upcycling for the Future, a
project to creates sculptures from
decommissioned parts of Boeing 767 and
Airbus A320 aircraft.
We continue to recycle waste generated from
aircraft after C-checks, using metal and
plastic parts in making Kazoku robots in
Almaty, and we work with people who
repurpose these materials, giving them a
second life.
Inflight product sustainability updates:
►
We use eco-friendly packaging wherever
possible
►
Cleaning-product bottles have changed to
recyclable materials
►
Amenity kits now feature small plastic
security seals instead of individual
packaging. For example, the economy
class travel kit includes a pillow that
passengers can take with them and use
on their return flight
►
Headphones are packed in biodegradable
packaging
►
Blankets are secured with paper bands
instead of plastic bags
FlyArystan has also introduced an initiative to
transform expired life jackets into shopping
bags, with proceeds from sales donated to
charity. Production began in 2023, and onboard
sales started in 2024. The environmental page
in the FlyArystan inflight menu for 2024 and
2025 aims to raise awareness among
passengers and stakeholders about
conscious consumption and sustainable
living. Launched in May 2023, we continued
FlyAndFun, FlyArystan’s digital platform, in
2024, reducing paper consumption through
electronic magazines, newspapers and
books. E-receipts save approximately 7 km of
thermal paper annually. The IFE system
without built-in screens lowers aircraft
weight, reducing fuel consumption and CO₂
emissions, as traditional seatback screens
can add 700 to 1,700 kg, while the server
weighs only 3 kg.
In 2024, FlyArystan continued the sale and
use of ready-to-drink tea in cups, reducing
disposable cup use 40% from 2023 while
enhancing passenger comfort and safety.
FlyArystan continued its forest restoration
project, Semey Ormany State Forest Nature
Reserve in Abay region,, aimed at preserving
ecosystems and increasing forested areas.
Waste disposal in Group’s sites (Almaty, Astana, Aktau)
Type of waste / unit Disposal method 2024 2023 2022
Hazardous waste
Hazardous waste
1
, tonnes
Total 17.87 11.8 8.2
Third-party disposal 5.34 - -
Waste dumping 12.53 - -
Non-hazardous waste, tonnes Total 2,924.69 2,984.2 2,823.32
Recycling
Other batteries and
accumulators
0.26 - -
Recycling
Used tyres
1.60 - -
Recycling
paper, PET
33.16 39.1 30.7
Recycling
Scrap metal
1.82 0.4 3.2
Waste dumping
Solid household
2,887.85 2,944.8 2,789.4
Total, tonnes
2
2,941.56 2,996.02 2,831.5
1
The amount of hazardous waste is due to the increased number of C-checks conducted in Astana, as well as the higher
disposal rate per kilogram. All hazardous and non-hazardous waste disposal operations, are fully managed by third-party
services provided offsite, in accordance with applicable environmental regulations.
2
Waste data has been compiled in accordance with the Group’s internal waste management procedures, ensuring consistency
with applicable regulatory requirements and operational practices.
Sustainable resources and relationships Environment continued
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
57
Environmental compliance
Air Astana Group complies with environmental laws and regulations.
The requirements of the Ecological Code came into force in 2021 and
we have incorporated them into our environmental protection
management system. No significant fines or penalties were issued for
non-compliance with environmental laws and regulations during 2024,
nor during the previous four years.
In December 2024, the Department of Ecology and Environment of
Almaty city confirmed that FlyArystan is classified as a Category IV
environmental hazard, indicating minimal negative impact on the
environment.
Total expenses for environmental protection
Expenses (USD) 2024 2023 2022
Environmental protection 142,734 129,178 43,529
Negative impact on the environment 2,166 379,925 299,298
Hazardous waste disposal 11,981 1,951 918
Transfer of household waste 90,011 86,831 82,092
The increase in payment for hazardous waste occurred due to the
increase in the number of C-checks, which, in turn, led to an increase
in the volume of hazardous waste being sent for disposal. Also, the
service provider for the collecting and disposing of hazardous waste
increased their fee. Another reason for the increase in cost was the
conclusion of a contract for the disposal of hazardous waste in Aktau,
and waste removal was carried out from Aktau.
Sustainable resources and relationships Environment continued
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
58
Approach
Safety is a key objective for the Group, and we
adhere to high standards and aim for continuous
improvement in all our daily business activities.
Our Occupational Health and Safety (OHS) system
is based on best practice and international
standards, and complies with all aspects of the
Labour Code of the Republic of Kazakhstan and
other legislative documents.
Occupational health and safety
Our OHS is re-certified to ISO 45001:2018. In July
2024, Air Astana passed the audit conducted by
the Intertek International Kazakhstan certification
body, certificate number: 0182178, in Almaty,
Astana, Aktau, Atyrau, Pavlodar, Shymkent
company representative. This included extending
the certification area to cover FlyArystan. The audit
team concluded that the top management process
is generally working well. Compliance with ISO
45001:2018 is generally confirmed.
We carried out a range of other health and safety
activities during the year: 115 employees
undertook certified online training in health and
safety; 629 employees were trained in industrial
safety, included 92 managers. We organised
annual professional health check-ups for
employees working in harmful or hazardous
conditions; and we updated health and safety
instructions by occupation and type of activity.
We continue to work on improving the quality of
special clothing. In 2024, we started providing
updated summer suits to all operational
employees, improving the fabric wear resistance
and ergonomic design.
We conducted alcohol and drug checks aimed at
preventing use of unauthorised substances in the
workplace by operational departments, including
flight and cabin crew members, engineering and
maintenance, and ground operations staff – in all
Kazakhstan regions and at international stations. In
2024, the total number of tests we conducted was
5,513: 1,045 drug tests and 4,468 alcohol tests.
Fire safety
All newly hired employees complete an introductory
fire-safety briefing and, subsequently, receive an
initial fire-safety briefing at their workplace. We
repeat these briefings annually, supplemented by
targeted ad hoc sessions as necessary.
We conducted a minimum fire-safety course and
issued certificates valid for three years to 141
employees, and conducted 17 fire evacuation drills
at our facilities. All our facilities are equipped with
automatic fire alarms and have primary fire-
extinguishing equipment such as powder and
carbon dioxide portable fire extinguishers, fire
shields and fire hydrants. In addition, automatic
fire-extinguishing systems, including gas, foam,
deluge, sprinkler and powder, are installed in
various premises such as hangars, server rooms,
archives and warehouses. We exercise control over
contractors who perform maintenance of primary
fire-extinguishing equipment and automatic
fire-safety systems, and carry out maintenance in
accordance with approved schedules. We passed
external fire-safety audits in Astana in May, and in
Almaty in October.
In 2022, we joined the global Vision Zero initiative,
emphasising our commitment to employee safety,
health, and well-being. In 2023–2024, we
conducted a survey among managers on
compliance with the concept and successfully
apply its practices in our work, ensuring the
highest occupational safety standards and safe
working conditions.
2024 highlights
Re-certification audit
for ISO 45001:2018
Since AOC was granted
to FlyArystan LCC in
2024, we have applied
standardised operational
and management
systems within the
Group
Successfully passed the
annual on-site EASA
Part 145 audit in
Almaty, Aktau and
Atyrau bases
Renewed our EASA
Part 147 (Maintenance
Training Organisation)
Material issues
Occupational health and safety,
Safety Management System
(SMS).
Guidelines we follow
Republic of Kazakhstan
legislation:
Labour Code; Law ‘On use of
airspace’, as well as relevant
Ministers’ Orders.
Other
Health, Safety and
Environmental Protection Policy;
Certificate of Registration for
Occupational Health and Safety
Management System; Safety
Management Manual;
Compliance Monitoring Manual;
Manual on Prevention of Use of
Unauthorised Substances; ISO
45001:2018; ICAO Annex 19 and
Doc 9859; EASA Part TCO, Part
145/147; Part CAMO; IOSA
ISARPS; Aviation Safety
Compliance Policy.
Seven golden rules of Vision Zero
1 Take leadership – demonstrate commitment
2 Identify hazards – control risks
3 Define targets – develop programmes
4 Ensure a safe and healthy system –
be well organised
5 Ensure safety and health in machines,
equipment and workplaces
6 Improve qualifications – develop competence
7 Invest in people – motivate by participation
Sustainable resources and relationships
Health and safety
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
59
OHS leadership is demonstrated through
discussions on health and safety issues at
monthly management meetings chaired by
the CEO.
Risk control comes through regular updates
of the hazard register and risk assessment,
taking into account changes in procedures,
work processes, and introduction of new or
modernisation of old equipment. An
important part of identifying risk is to analyse
incidents and accidents at workplaces.
A Working Group on OHS continues its work
in the Inflight Services Department. The
group consists of flight attendants who have
extensive work experience and a desire to
maintain an organised OHS management
system. The members observe the work of
flight attendants during the flight, send their
suggestions for improving internal processes,
and share their experience with newcomers.
Our annual safety awards, including OHS
Recognition, once again honored employees
who made outstanding contributions to
enhancing safety culture, knowledge, and
skills. This award celebrates those who have
demonstrated dedication and enthusiasm for
health and safety throughout the year. In
2024, two nominees were recognised for their
exceptional commitment at the annual awards
ceremony.
We held safety forums for employee in
Ground Services and Inflight Services,
including speakers from other departments.
This familiarises employees with the activities
of related departments and broadens their
horizons, which has a positive effect on
increasing their competence and efficiency. In
addition, we held meetings for drivers of the
motor transport service to maintain
awareness of safety in different weather
conditions, to increase employee motivation
through participation, and to familiarise them
with the innovations introduced during 2024 in
procedures and equipment.
Sustainable resources and relationships Health and safety continued
Reported accidents
In 2024, Health, Safety and Environment (HSE) received 234 OHS reports summarising incidents,
hazardous working conditions, dangerous actions and near misses. The most common types of
work-related injuries reported were occupational bruises and physical traumas. These incidents
primarily occurred during core operational activities, including ground handling, aircraft
maintenance, and in-flight cabin services.
2024 2023 2022
Number of incidents 47 41 112
Recordable work-related injuries 30 29 17
Number of employees 6,546 6,499 6,184
Total accident rate (TAR) 4.58 4.46 2.75
Lost time injury frequency rate (LTIFR) 3.28 3.24 2.78
Fatal injury rate (FIFR) - - -
Number of hours worked 9,138,297 8,950,617 6,115,108
Accident severity ratio 39.39 40.17 25.40
High-consequence work-related injuries
(excluding fatalities)
- - -
Occupational morbidity ratio - - -
The Group’s OHS Committee includes all employees at CEO-1,-2,-3 levels due to their high level
of responsibility in decision-making. Employees at other levels contribute to the decisions made
by the Committee by completing health and safety surveys. In addition, they take part in
internal audit procedures for the occupational health and safety management system.
We have implemented an IQSMS to process occupational health and safety requests instantly,
while more-significant requests are discussed at the OHS Committee meetings. The Committee
holds monthly sessions with a primary focus on discussing working conditions. The Group’s
management pays considerable attention to improving the working conditions of employees.
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
60
Mental health
Mental health support through the services
provided by psychologists, launched in 2021,
is highly appreciated by our employees.
Sessions are conducted by practising analytical
psychologists and psychotherapists. In 2024,
more than 1,500 sessions were held, an
increase of 66% over 2023. Providing access
to psychological support helps employees
deal effectively with stress, conflict and other
emotional issues and is directly related to their
productivity, motivation and overall wellbeing.
In addition, we recognise work can be
demanding, so our approach helps create a
healthy and supportive work environment
where employees can achieve their
professional goals. This is very much part
of our role as a caring employer, helping
strengthen the bond with our employees.
We promote the services in a number
of ways, and employees are guaranteed
confidentiality. Our managers recommend
these services and emphasise their importance
for wellbeing and professional development.
We are planning anonymous surveys to
assess the effectiveness of the services,
to see whether we can improve them.
Safety Management System
(SMS)
Maintaining the highest safety standards is
vital, and our approach goes beyond simple
compliance with requirements: we cultivate
a culture of safety, and look to continuously
improve and embrace international best
practice. Our SMS aims to identify the
potential hazards connected with aviation
operations and mitigate these risks to
acceptable levels. It covers all levels of the
organisation, with specific safety programmes
for flight operations, cabin crew, engineering
and maintenance, and ground services. Since
it started in May 2002, we have carried 83
million passengers safely, with no accident
during passenger or cargo operations.
Compliance monitoring
programme
We have had the EASA Part 145 approval to
maintain our fleet in accordance with EASA
requirements since 2003. The on-site renewal
audit took place in Almaty, Aktau and Atyrau
in September 2024. As a holder of an EASA
Part 145 certificate, we carry out full
maintenance services on our own aircraft and,
additionally, provide line maintenance services
to 26 other air carriers. We have also been
certified as an EASA Part 147 Maintenance
Training Organisation since 2015; the renewal
audit was carried out in October 2024.
We were the first operator audited under
the EASA Third Country Operations (TCO)
certification, in December 2015. The
authorisation complies with EASA Part-TCO,
as well as with UK TCO authorisation,
obtained in 2022.
Our operations comply with appropriate
standards of safety and security regulated by
the Aviation Administration of Kazakhstan
(AAK) as state of operator and, under
International Civil Aviation Organisation
(ICAO) Article 83bis agreement, the Irish
Aviation Authority (IAA) as state of registry
responsible for overseeing airworthiness.
During 2024, Air Astana underwent a number
of external regulatory inspectionsor renewals:
►
AAK – FlyArystan’s Initial AOC certification,
Air Astana’s AOC renewal audit,
certification inspection of Maintenance
Repair Organisation, inspection of
Continuing Airworthiness Management
Organisation (CAMO), scheduled and
unscheduled inspections of Maintenance
Organisation
►
Air Astana underwent AMO renewal
approvals from 6 external aviation
authorities
►
Irish Aviation Authorities – conducted
Aircraft Certificate of Airworthiness
renewals for 48 aircraft
►
EASA – Part 145 and Part 147 renewals
audits
►
Ramp Inspections – Air Astana Group
operations and aircraft underwent 23
European Civil Aviation Conference (ECAC)
SAFA (Safety Assessment of Foreign
Aircraft) and eight ramp (non-ECAC)
inspections
Within the internal compliance monitoring
programme, we conducted nearly 240
compliance audits based on IOSA SARPS and
national regulations. Compliance monitoring
is also supported by membership of the IATA
Fuel Quality Pool (IFQP).
Sustainable resources and relationships Health and safety continued
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
61
Safety programmes
In 2024, our flight-data monitoring analysed
more than 99% of flights. This is to identify
and assess existing operational risks and take
relevant action based on trends and root
causes. We have incorporated elements of
evidence-based training (i.e. data and
lessons learnt from both the flight
management system andsafety
investigations reports) into the training
system for pilots, with positive results.
We continue to encourage operational staff
to report hazards and errors as an important
element of our safety culture. Over the year,
more than 4,000 safety reports were
registered, enabling us to maintain an
accurate perception of risk.
The Prevention of Use of Unauthorised
Substances programme for safety-sensitive
aviation activity staff (SSAA) continued in 2024.
Pilot drug checks were expanded with a
campaign starting in May 2024 that includes
drug tests during induction training, before and
after flights, and on any other available days
according to their roster - 326 pilots were
tested.
The Group’s Fatigue Risk Management (FRM)
programme enables Crew Planning & Control
to estimate the alertness of crews and make
necessary adjustments to rostering based on
trends. In addition, flight and cabin crew
increasingly used the self-assessment tool,
Crew Strain Application (CSA) to provide
feedback on fatigue levels, workload, roster
and rest conditions, particularly during the
busy summer months. Biomathematical
threshold was set in April 2024 using in crew
rostering at the planning stage. This measure
helped pre-emptively reduce fatigue risk.
We continued a process of efficient
communication between departments and
stakeholders on the management of change
and relevant risk assessment (RA). The most
common RAs carried out in 2024 related to
aerodrome changes, conflict zones,
regulatory changes and specific changes
related to FlyArystan operator certification,
as well as for new routes or destinations
including charter and scheduled flights.
We made further progress enhancing the
Wildlife Hazard Management Plan in 2024,
focusing on Almaty and Astana airports. The
experts reports gave recommendations for
each airport on habitat control and data
management.
Having stated this, the birdstrike rate
increased 33% from 2023 and although the
season is over, the high incident rate remains
a concern. A related project with UK experts
will continue at Astana and regional airports
in 2025.
We are a major contributor to a number of
international safety organisations and
programmes, set up to enhance safety and
operational efficiency, including IATA Global
Aviation Data Management. Through our
membership of the Association of Asia Pacific
Airlines, we participate in safety and security
workgroups, which allows us to stay abreast
of the latest technology, innovations and
processes, while also ensuring our safety
programme managers interact with leading
professionals. Similarly, membership of Flight
Safety Foundation (since 2004) stimulates an
environment conducive to improvement.
In October 2024, we hosted our 8th Regional
Safety Seminar, to promote and encourage
safety within the region. Entitled Proactive
Safety: Resilient and robust safety culture,
the seminar aimed to share knowledge,
experience and best practice within the
aviation industry. It was attended by
representatives from eight countries, with
20 speakers and over 200 participants from
other airlines, aircraft manufacturers,
international organisations and regulators.
Sustainable resources and relationships Health and safety continued
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
62
Highlights
As part of the IPO
launch, management
developed an
employee share option
programme. All
employees who met
the programme’s
criteria became
shareholders in
February 2025
Ten years ago, in 2014,
the Group introduced
the HEART values and
held our first awards
ceremony to recognise
the best employees
Since 2010, and up until
2024, 75% of KC Talents
programme graduates
have been promoted
within Air Astana Group
Material issues
Employment, Training and
development, Procurement
practices
Guidelines we follow
Republic of Kazakhstan
legislation:
Labour Code; Customs Law;
National Economics Ministry
rules and orders; Customs
Union Committee resolutions;
authorised permits of the
National Security Committee,
the Ministries of Digital
Development, Defense and
Aerospace Industry (Committee
of Telecommunication), the
Committee of Industrial
Development and Industrial
Safety of the Ministry of
Investment and Development,
the Committee of State Income of
the Ministry of Finance; Tax Law.
Other:
Group strategy; Corporate goals
and values; Conditions of
service; Code of Ethics;
Anti-corruption Policy; Policy
for Prevention and Settlement
of Conflicts of Interest;
regulations of the Procurement
and Supply Department; labour
codes of countries where we
base our employees; Collective
agreements with trade unions;
IATA Standards; EASA
regulations; National standards;
ICAO regulations; Incoterms
2020; Dangerous Goods
Regulations of IATA; Rules of
Cargo Insurance; Eurasian
Economic Union Treaty;
Customs Clearance Procedure.
As one of the major employers in
Kazakhstan, we pride ourselves on
attracting and retaining some of the
best talent, thanks to our strong focus
on recognition, development and
equality. In 2024, we continued to
improve operational excellence
through investing in our people –
particularly in our training programmes
and employee engagement,
underpinning our continued success
in providing best-in-class services.
Employees
Approach
The long-term sustainable success of the Group’s business
depends on the expertise, skills and motivation of our
employees. As a socially responsible organisation, we recruit,
appraise and reward employees based on merit and help them
develop to their maximum potential. Our workplace
environment – based on our corporate HEART (Air Astana) and
CHARM (FlyArystan) values – is one where recognition,
development and equality all thrive to ensure that we attract
and retain talented people. We operate our business with the
highest standards of integrity and ethics, which is also reflected
in the transparency and fairness of our recruitment process.
Employment
We are one of the few non-accounting firms in Kazakhstan to
receive the prestigious Platinum status award from the
Association of Chartered Certified Accountants (ACCA) in their
Employer – Trainee Development programme. Being recognised
as an ACCA-approved employer reflects our commitment to
meeting the highest standards in training and developing
financial professionals.
In 2024 we maintained a strong focus on recruiting for key
operational roles, including pilots, engineering and ground service
staff. The recruitment process for cadets in ab-initio pilot and
apprentice aviation technician training programmes continued, while
we also revived the selection process for flight attendant candidates.
As part of our Employer brand enhancement efforts, we successfully
launched an internship programme, welcoming almost 400 interns
to various departments. The largest group of interns went to Ground
Services, with additional placements in departments such as Finance,
IT, HR, Marketing, and many others. This initiative provided valuable
experience and helped build a strong pipeline of future talent.
Sustainable resources and relationships
Our people
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
63
Sustainable resources and relationships Our people continued
To further enhance awareness and attract talent
to aviation professions, we fostered close
partnerships with educational institutions across
Kazakhstan. We organised more than 200 online and
offline events, significantly increasing the number
of applications for pilot and aviation technician
training programmes, as well as ensuring a steady
inflow of candidates for other operational roles.
In pilot recruitment, the Group continued its global
recruitment strategy, with 2024 seeing the addition of
new pilots from beyond the local market. Alongside
candidates from Kazakhstan, pilots from the CIS
countries, Europe, Latin America and other regions
joined the airline, strengthening its global team.
These efforts reflect our ongoing commitment to
attracting and developing top talent, ensuring the
continued growth and success of the Group.
Apprentices from 2023 intake are now promoted
to Junior mechanics as at September 2024.
In 2024, the Group employed 6,546 people (2023:
6,499). We hired a total of 818 new employees
during the year (in 2023: 1,077): 596 at Almaty (in
2023: 725); 216 across other Kazakhstan cities (in
2023: 344); and 6 at international stations (in
2023: 8). The gender split across new employees
was 421 women (in 2023: 543) and 397 men (in
2023: 534). The age group breakdown was: 582
employees under 30 (in 2023: 742), 215 aged 30-50
(in 2023: 306), 21 aged over 50 (in 2023: 29). The
rate of hire in 2024 was 12% (in 2023: 17%).
The age profile of the Group remains relatively
young, with more than 70% younger than 40:
aged under 30 – 2,568; aged 30–50 – 3,455; aged
over 50 – 523 employees. The turnover rate from
the total number of employees is 12.31% (2023:
11.96%), which is within the normal range. In
2024, we updated the approach for the turnover
rate calculation to ensure greater alignment with
best practices.
A total of 806 employees left the company during
the year (in 2023: 777): 529 from Almaty (in 2023:
459), 271 from other Kazakhstan cities (in 2023:
296), and 6 from international stations (in 2023:
22). The turnover included 449 women (in 2023:
442) and 357 men (in 2023: 335), with 413 aged
under 30 (in 2023: 407), 326 aged 30–50 (in 2023:
311), and 67 aged over 50 (in 2023: 59).
Pilot training
programme
Total number of
graduates since
the start of the
programme
282
Number of cadets
in 2024
30
Growth in the
number of cadets in
2024
11
Planned number of
cadets in 2025
40
Apprentice
programme
Total number of
apprentices since
the start of the
programme
18
Diversity and equal opportunities
We promote diversity and equal opportunity in
the workplace, believing every employee should
be able to fulfil their potential, regardless of
gender, age, nationality, religion or physical
characteristics. We consider that cultural diversity
and success go hand in hand: different
nationalities bring different perspectives and
experiences, broadening our thinking and ideas,
which are valuable assets to the Group.
We provide equal opportunities for men and women
regardless of age or nationality, creating a truly
diverse workforce of highly skilled people in many
countries and continents. We employ 3,882 women
and 2,664 men, from different nationalities and
ethnic groups, with diverse backgrounds, faiths and
beliefs. This provides a stimulating and fair working
environment for everyone. We believe strongly that
gender and diversity should not be barriers to career
progression within the Group. At the senior
management level, comprising 45 people, the
gender split currently is 49% female and 51% male.
Remuneration for each category of
employees is set regardless of gender
All employees, regardless of gender, are entitled to
parental leave in accordance with the Labor Code
of the Republic of Kazakhstan.
Our position on equality also includes entitlement
to parental leave regardless of gender although, in
practice, more women than men exercise this
right. In 2024, 256 employees took parental leave
(15 men and 241 women). In 2023, 231 employees
took parental leave (17 men and 214 women).
Total workforce
6,546
Female
3,882
Male
2,664
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
64
Sustainable resources and relationships Our people continued
This year, we revised our approach to
reporting parental leave, disclosing only
employees who took leave during the
reporting period, rather than the accumulated
total from previous years. The total number of
employees who returned to work in the
reporting period after parental leave ended
was 207 (in 2023: 186): male – 20, (in 2023:
15), female – 187, (in 2023: 171). Return to work
in 2024 was 74% (in 2023: 67%): male – 67%,
(in 2023: 68%), female – 75%, (in 2023: 67%).
We believe professional growth and
development should be the right of all our
employees, including those with disabilities.
The total number of employees who returned
to work after parental leave ended that were
still employed 12 months after their return to
work in 2024 was 170 (in 2023: 233): male - 14
(in 2023: 14), female - 156 (in 2023: 219).
Retention rate in 2024 was 91% (in 2023: 69%):
male - 93% (in 2023: 67%), female - 91% (in
2023: 69%).
We continue to look for opportunities, and in
June 2023, a person with a disability joined us
as an intern and continues to work successfully.
We are proud to have created an inclusive and
friendly work environment, which has also led
to improved team productivity and provided
equal opportunities now and in the future.
In 2024 there were no registered cases of
discrimination.
Freedom of association
The Group acknowledges the right of
employees to join trade unions, which
protect and support their interests, and
conducts negotiations with three trade
unions:
1. A non-governmental organisation (NGO)
«Local Labor Union of Aviation workers of
Kazakhstan»
2. «Local Air Astana Pilot Labour Union»
3. «AVIATOR Pilot» Labour Union of
Air Astana JSC
We aim always to prevent labour disputes
before they arise. The internal labour
regulations outline the procedures for
employees to address grievances about
working conditions, make recommendations
or address other issues within the Group.
Direct supervisors, department heads and
overseeing business partners are involved in
resolving problems.
Additionally, we engage internal mediators to
facilitate the resolution of employee problems.
Trade unions exist to balance the opinions of
employee representatives and participate in
committees within the framework of labour
legislation. We inform every employee they
may join a trade union at any time.
In 2023, a collective three-year term
agreement between employee and employer
representatives and the Agreement on the
Conciliation Commission for the Resolution of
Individual Labour Disputes was also signed.
Competitive salaries and benefits
To attract and retain a highly skilled and
motivated workforce, the Group provides fixed
and variable pay as well as short-term and
long-term benefits that are competitive and
merit-based. All employees undergo an
annual performance appraisal and, as a result,
have their salaries reviewed.
Following the principles of responsible
management, we closely monitor the
economic dynamics of the market and
support the welfare of our employees.
To enhance competitiveness and improve
working conditions for employees, in 2024
we took measures to review and
significantly increase the hourly flight-time
rate for cabin crew.
Air Astana’s IPO in February was a landmark
event in the Company’s history, made possible
by all employees. The pursuit of high standards,
hard work and dedication of each employee
has played a significant role in its success.
As part of the IPO launch, management
developed an employee share option plan
for Air Astana. All employees who met the
criteria became shareholders of the Company
in February 2025.
This is a special gift on behalf of the first
shareholders of the Company, as well as the
result of the management’s efforts that led
to the creation and implementation of this
programme, unique in Kazakhstan, for
employee participation in the company’s
capital.
Our benefits package is available to all
employees, whether permanent, temporary
or part-time. However, some benefits are
only available after passing the probation
period. Our employee benefits package
includes:
►
Corporate pension plan
►
Health and medical insurance
►
Loss-of-licence insurance for pilots
►
Mental health support through the
services of psychologists
►
Discounts on flights with Group or partner
airlines
►
Shuttle bus for commuting to and from
work
►
Discounts for gym membership and in
restaurants, bars and hotels
►
Support for various sporting activities
(football and volleyball teams, etc)
In line with national labour legislation, we
pay compensation to employees when they
reach retirement age and their contract is
terminated, the amount paid depending on
the length of service:
►
Two months’ salary for up to 10 years’
uninterrupted service
►
Three months’ salary for employment of
more than 10 years’ uninterrupted service
If an employee participates in the corporate
pension plan and reaches pension age in
accordance with the labour legislation of the
Republic of Kazakhstan and upon dismissal of
an employee aged 58 years or more, the
employee receives the full payment provided
by the terms of the plan. The interest rate is
14.05% per annum; the annual effective
interest rate was 15.2% in 2024.
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
65
Employee engagement
The HEART Way
In 2014, Air Astana launched a project to
define and promote the Company’s core
values. At that time, the airline’s leaders
came together to identify the key aspects of
our work and encapsulated them in a single,
meaningful word – HEART. Each value was
already an integral part of our daily
operations: Hospitality, Efficiency, Activity,
Reliability, and Trustworthy.
For the past ten years, the phrase “I’m part
of HEART” has symbolised being part of
aviation and Air Astana.
Since then, HEART values have been deeply
embedded in the our HR processes. Each
value represents competencies and skills our
employees embody. Based on the HEART
competency model, we evaluate candidates
during the hiring process, select top
employees, and incorporate HEART into
annual performance assessments. Training
materials from our Training Academy are
carefully designed to strengthen skills in
alignment with the HEART model.
HEART values have become a living reflection
of the Company’s corporate culture and
continue to serve as guiding principles for
employees, setting expectations for their
daily work. We firmly believe that adhering
to these values will help us remain a strong
team of professionals.
Recognition culture
In the same year we presented the HEART
values, 2014, we held our first awards
ceremony to recognise the best employees.
2024 continued the theme, as we once
again celebrated the achievements of 150
top employees across the Company. As per
tradition, we selected the 20 best of the
best and presented them with a special
Company award – a seven-day trip for them
and their families.
To foster a culture of recognition and
feedback, the Company operates the KC
Recognition system, through which
employees sent over 26,000 messages of
appreciation in 2024. These messages are
public, while private feedback is sent through
KC Feedback, visible only to the employee
and their manager.
An annual event, Breakfast with the CEO,
serves as an opportunity to honour employees
for their years of service. In 2024, over 170
employees who have been with the Company
for ten years, and nearly 80 employees with
20 years of service, received awards.
Human rights
We promote and uphold human rights,
including the eradication of slavery in all its
forms. We truly believe that slavery, forced or
compulsory labour, and human trafficking,
are serious violations of human rights that
have no place in our operations. We operate
in a responsible and ethical manner, and
ensure our business practices do not
contribute to any form of modern slavery. We
have not identified any instances of slavery,
forced or compulsory labour, or human
trafficking, in our operations.
Talent management
Talent management is a strategic and
systematic process of identifying, attracting
and planning for employees with high
potential and leadership aspirations. The
developing and improving their skills is a
prerequisite for the Group’s sustainable
development. Our talent management
programme focuses on search and selection,
talent development and retention, people
performance management, succession
planning and leadership development, and
culture and values.
KC Talents Programme: Developing future
leaders
Since its launch in 2010, the ‘KC Talents’
programme has played a key role in
identifying and developing future leaders
within the Air Astana Group. Designed to
identify and nurture high-potential employees,
the programme prepares them for managerial
roles through strategic learning, mentorship,
and real business challenges.
The mid-term development programme is
launched by Air Astana Training Academy
with leading business school De Montfort
University KZ. It includes leadership
development modules, covering topics such
as Strategic Planning, Financial Intelligence,
and Managing Change, workshops,
masterclasses and mentorship with the
Group’s leaders, coaching, practical
assignments and cross-functional projects.
Since 2010, and up until 2024, 75% of
programme graduates have been promoted
within Air Astana Group. In 2024, 14
participants successfully completed the
programme.
Sustainable resources and relationships Our people continued
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
66
Training and development
People development – corporate
training
During 2024, we continued to focus on
developing our management teams, in
particular as they move into a supervisory or
managerial role. As such, we launched a new
In-boarding Orientation workshop to equip
newly promoted employees with an essence
of the core skills needed as a leader, and to
provide practical strategies to be effective in
their new roles, address new challenges and
align team goals with Company objectives. The
focus on our Leadership Essentials programme
continued, aiming to provide new and current
managers with skills in managing people. More
than 500 participants are in progress and 277
completed the course in 2024.
In addition, the Academy ran four skill-
development modules, based on business
demands for different levels of employees.
These were Conflict Management, Stress
Management, Peer Feedback and Building
High-Performing Teams, attended by more
than 500 employees.
We developed a newly updated OJT (on-the-
job training) programme and completed ten
sessions with attendance of more than 100
Ground Services and Ticketing & Reservation
(T&R) employees.
To improve linguistic ability, we offered
language training in English (333 employees
completed) and Kazakh (38 employees
completed). To focus on our new joiners to
the Group, our Orientation Welcome day ran
62 times, covering more than 1,000
newcomers.
The average number of training hours per
employee was 50.43 hours (in 2023: 6.32
hours). The significant increase in the hours
of training per employee is due to the
improvement of the training hours
accounting process. The collection of
gender-specific data was not feasible for
prior year, as the system did not support this
functionality. The breakdown by employee
category is as follows:
►
Per female employee: 37.34 hours
►
Per male employee: 69.50 hours
►
Per employee from operational
category: 57.96 hours (in 2023: 8.5 hours)
►
Per employee from administrative
category: 14.57 hours (in 2023:
4.9 hours)
In 2024, a total of 155,262 hours were
dedicated to skill-enhancement programmes,
accounting for 47.03% of all training,
330,124 hours.
We do not provide transition assistance
programmes.
Sustainable resources and relationships Our people continued
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AIR ASTANA GROUP Integrated Annual Report 2024
67
E-learning – corporate training
Our online library provides access to
high-quality self-learning courses, books and
materials. These are all aligned to the HEART
values and corporate skills, aiming for a
culture of self-development across the
company. We continued with a blended-
learning approach in our training, with a
mix of e-learning, webinars and classroom
programmes. In addition to the already
extensive library of online courses, we have
42 new external CBTs, 40 Harvard Business
Review articles and 53 summary books. This
accounts for a 20% increase in Computer
Based Training (CBT) and 32% in reading
materials in 2024. All these self-learning
materials in LMS are available for Air Astana
and FlyArystan employees free of charge. Our
investment in the Training Resource
Management System (TRMS) cloud application
resulted in three new releases, with more
than 250 business tasks implemented and all
historical training data for 2023-2024 now
uploaded into the system. All data about
training planning (both for Air Astana and
FlyArystan), which are delivered by the
Training Academy, are now in the one system.
This helps with reports and issues, and
invoicing training for FlyArystan.
Operational training
Cabin-safety training
A key achievement in 2024 was acquiring
and installing new safety mock-ups at the Air
Astana Flight Training Centre in Astana. The
Cabin Emergency Evacuation Trainer (CEET)
and Real Fire Fighting Trainer (RFFT) have
significantly reduced crew training costs
previously incurred by sending pilots and
cabin crew to foreign training centres.
Both simulators are leading-edge, and can
simulate different types of emergency
procedures and fire fighting in a realistic
environment.
Ground Services safety training
A key achievement recognised at the Annual
Safety awards was the development of a
specialised training programme on the safe
transport of radiopharmaceuticals for the
Ground Services department. This initiative
ensures the rapid air transport of critical
medications, improving recovery chances
for seriously ill patients. Another recognition
at the ceremony for 2024 was the impact
de-escalation training had on front-line
employees’ ability to deal with conflict,
aggressive behaviour and physical violence,
which occurs, albeit rarely. This course was
developed jointing by the Academy team,
with Ground Services, Corporate Trainers and
the E-learning team, and has resulted in a
decrease in safety reports on this topic.
Training courses conducted included 54 initial
training sessions for new agents and cadets
in passenger, baggage and ramp handling.
This programme, as with all our courses,
complies with IATA standards and national
regulations, guaranteeing the highest levels
of safety and professionalism. We conducted
153 aviation security courses and 108
dangerous goods courses for various personnel
categories across the Group, ensuring strict
compliance with safety protocols. We also
conducted 20 load-control courses, ensuring
precise application of aircraft weight and
balance principles during loading procedures.
Sustainable resources and relationships Our people continued
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
68
Engineering and maintenance training
Engineering and Maintenance (E&M) is highly
regulated under the key authority bodies,
including EASA Part-147/145, ICAO, and AAK,
undergoing regular audits, as do all
operational departments. This year, we
successfully completed audits from EASA,
Qatar Airways, FlyDubai and Turkish Airlines.
For specific training initiatives, the team
conducted six A320 Part-147-type training
courses, totalling 101 training days, with
67 participants. Additionally, we delivered
90 Approved Training Organisation (ATO)
training sessions covering 17 subjects
(including Module 10, Part-145, SAFA, EWIS,
ETOPS, FTS and mandatory continuation
training) in over 301 training days, with
a total of 963 engineering employees.
In 2024, we launched a Part-66 training
programme for our current engineering
employees, with 16 participants, which is
scheduled to be completed in April 2025.
The course consists of 15 theoretical modules
that must be passed, allowing individuals to
proceed toward obtaining an EASA B1.1/B2
licence. Additionally, the Apprenticeship
Part-66 project, which began in September
2024, focuses on both theoretical and
practical components. This programme is
designed for ten students with a two-year
training duration.
We trained over 400 engineers within our
current maintenance providers, at multiple
locations in our procedural agreements,
including all international stations. Training
was arranged for new customers: EAT,
EgyptAir, FlyArystan, Indigo and VietJet.
Air Astana’s maintenance now also serves
FlyArystan as a customer.
As part of our strategy to increase our
external customer base for maintenance, we
organised B737, A330 and B777-type training
to improve our capacity and extend aircraft
licences. The goal is for our in-house trainers
to conduct type training for the B787, B767
and B737 aircraft once the necessary
approvals are obtained.
Ticketing and Reservations training
A core focus in Ticketing and Reservations
(T&R) in 2024 was to develop a Flight
Disruption course, a need highlighted by our
customer experience (CX) data. The main
objectives were to train agents to
independently navigate schedule changes
and to be able to rebook in accordance with
procedures, and to think more widely about
rebooking options, including routes on
partner airlines – all of which will speed up
managing customer disruptions.
The T&R team collaborated effectively with
key departments such as CX, Service
Recovery and Delay units, demonstrating a
unified approach to training and to what
customers need in these situations. The final
course is a two-day blended learning course:
an online pre-course and two days of
classroom training, and over 16.5% of T&R
employees attended in 2024. Based on
feedback (4.9 out of 5) and positive reviews
from training participants, it was decided to
include this course as a mandatory part of
the learning pathway for new employees in
T&R. This emphasises our commitment to
continuous professional development.
Flight operations training
The flight operations training department
continues to provide training in accordance
with Kazakhstan regulatory requirements and
ICAO standards, as well as IATA requirements.
All 588 current pilots completed annual-
recurring ground and simulator training in
accordance with Operational Manual Part D
(OM-D). During 2024, we recruited and trained
82 new pilots, and two new type rating
examiners, six type rating instructors and
eight line-training instructors successfully
completed qualifying training courses. For
other groups in 2024, three ab initio cadets
graduated, 18 First Officers attended
Command Upgrade Training (promotion
from First Officer to Captain) and 53 pilots
completed initial type rating courses on A320
and B767. The total number of cadet graduates
since the start of the programme is 282, total
growth of ab initio was 11 in 2024, and the
planned number in 2025 is 40 cadets.
We launched our new programme, Running
the Show, in May 2023 to prepare First Officers
for future commander roles, with 115
participating in 2024. Since we launched the
L3 Harris A320 Full Flight Simulator Training at
the Flight Training Centre in Astana in summer
2023, all pilots have attended training and
checking, and completed 7,300 simulator
hours during 2,039 simulator sessions.
Sustainable resources and relationships Our people continued
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69
AIR ASTANA GROUP Integrated Annual Report 2024
Customer service training
In 2024, the Customer Service Training Unit
provided sales and service promotion
programmes for both front-line and back-
office support employee, as well as for
external clients, aimed at improving service
quality, operational efficiency, and workforce
development and engagement. Initial training
is 48% of the total unit training activities and
is aimed at new hires and role-specific skill
development. In total, we completed 38
courses covering over 500 people for Ground
Services, T&R and Cabin Crew and ran
graduation ceremonies for all uniformed
employees, to congratulate them on passing
initial training for both safety and service.
Recurrent training covers 36% of the total
unit training activities, focusing on refreshing
skills for experienced employees and
maintaining service standards. In total we run
45 courses covering more than 850 Air Astana
cabin crew in service and standards, and more
than 70 in sales for FlyArystan crew.
Promotion training covers 6% of the unit
training courses, designed to prepare
employees for leadership roles and
collectively IFS/PU/FJ courses covered
85 employees..
Training for specialised roles accounts for 5%
of the unit training activities and is aimed at
enhancing customer experience and
operational efficiency. Courses completed in
2024 include: Lounge The Shanyraq Agents:
two courses, 15 trainees; HR and Crew Service
Centres: four courses, 36 trainees; Outstation
Supervisors: one course, four trainees and;
Summer Taskforce Volunteers: three courses,
64 trainees.
Training external clients take up 5% of
training. We conducted six external courses
with 76 participants, which included Border
Control of Almaty airport, Committee of
National Security and L’Occitane cosmetics.
Training Academy – in summary
The Academy continues to focus on aligning
customer experience and training with our
core business objectives of efficiency,
excellence and growth. Our blended-training
approach continues to promote efficiency
and productivity with self-learning education
growth, and our continual focus on
benchmarking our training in technical,
operational safety and customer service as
well as our leadership development,
improves excellence and supports growth.
Our brand is further enhanced with our
training to external clients, including, but not
limited, to Prime Aviation, Comlux, Lufthansa,
Kazaviaspas, Global Express Limited, JSC
Almaty International Airport, MED Invest
Group. Our E&M, Operational and Customer
Service teams were involved in delivering
programmes, both to airlines and non-airlines.
The ability to train external clients in both
commercial and other sectors demonstrates
our credibility as a training leader beyond
aviation, and makes the unit a fully-fledged
revenue-generating department. In 2024, we
beat our revenue target by 25%.
Finally, in 2024 we were awarded by
American Chamber of Commerce, the Most
Innovative Education Training Programme,
and by Global Brands Magazine based in the
UK, Best International Airline Brand in Central
Asia & CIS and Best Aviation Training Centre
in Central Asia & CIS.
Sustainable resources and relationships Our people continued
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
70
Sustainable resources and relationships Our people continued
Suppliers
To meet our operational need for high-
quality goods and services delivered in a
timely manner, we have maintained and
expanded our broad-based supply chain.
We continue to build long-term relationships
with suppliers of all sizes, from small
businesses to multinational corporations,
while integrating sustainability principles
into our procurement strategy.
Procurement practices
Our procurement process follows
international best practice, ensuring
transparency and equal opportunity for all
potential suppliers. Our framework includes
procurement procedures, management
standards and strict compliance rules.
Key advances in 2024
We approved our Procurement Standard,
incorporating sustainability criteria for
suppliers. This includes supporting human
rights, combatting modern slavery, embracing
diversity and inclusion, preventing corruption,
and minimising environmental impact. We
continued our commitment to including
organisations that employ disabled people. In
2024, we secured agreements for stickers for
salt and pepper shakers, business-class
blankets, protective gloves, and knitted gloves
from organisations who employ people with
disabilities. We made preparations for the
Sustainable Supply Chain Finance (SSCF)
Programme in collaboration with the EBRD.
This initiative strengthens suppliers and aligns
them with the sustainability goals of their
buyers, fostering a resilient and eco-friendly
supply-chain ecosystem.
Overcoming challenges
Our agile supply-chain processes enabled us
to re-route major supplies in compliance with
UK, EU, and US sanctions, ensuring
uninterrupted operations. Logistics teams
closely monitor internal processes, freight
forwarders, optimal routes and delivery
methods to maintain a lean and agile supply
chain, reducing overheads and improving
profitability.
Purchases from local suppliers
We remain committed to sourcing goods and
services from local suppliers within
Kazakhstan. By prioritising partnerships with
local businesses, we contribute to the
socio-economic growth of the country while
ensuring cost-efficient procurement. Our
2024 initiatives reinforce our long-term ESG
commitments, creating a more sustainable,
responsible and resilient supply chain that
supports both operational excellence and
corporate sustainability goals.
2024 2023 2022
Percentage of the procurement budget used for significant
locations of operation
*
that is spent on suppliers local to
operations (percentage of products and services purchased locally)
32% 31% 26%
* The territory of the Republic of Kazakhstan.
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
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71
Sustainable resources and relationships
Communities
We believe it is important to nurture
strong relationships with the
communities where we operate. We
focus on initiatives that can deliver
a meaningful community impact
through sustainability, inclusivity
and long-term positive outcomes.
Our approach and methodology have
remained consistent since we established
a formal social projects framework in 2022:
►
Long-term corporate social and
environmental projects
►
Cooperating with local and national
charities and other not-for-profit
organisations
►
Providing targeted support to groups most
in need of assistance, including sick
children, persons with disabilities and
veterans of the Great Patriotic War
►
Employee involvement in charitable
activities through fundraising and
volunteering opportunities
The criteria we use to identify and select
charities and funding projects are based on
the value they bring to communities and
their alignment with our ESG goals and
corporate values.
Projects implemented in 2024
Project Description
Humanitarian aid
during floods in
Western Kazakhstan
In response to the severe spring flooding in several regions of the country, the Air Astana Group took the initiative to provide
humanitarian aid. A total of 75,000 kg of essential supplies from non-governmental organisations and initiative groups were
delivered to the affected areas. 41 extra relief flights from the region were performed. Additionally, Air Astana donated
USD 2.7 million to support recovery efforts in the flood-affected regions.
Furthermore, our employees initiated a fundraising campaign and collected essential supplies, which were then sent as
humanitarian aid.
Zhas Kyran
programme
Through our Zhas Kyran programme, 56 gifted children from Aksai, Almaty, Astana, Atyrau, Ekibastuz, Karaganda, Taraz,
Oskemen along with their accompanying guardians, received free airline tickets to participate in international academic, sport
and art competitions and Olympiads across Europe, the US, the UAE, Japan, and other countries. This initiative enabled talented
Kazakhstani children to fulfil their dreams and represent Kazakhstan on the global stage.
Support for socially
significant projects
Throughout 2024, we contributed to a number of social projects and initiatives, including support for the presentation of
Leonardo da Vinci’s painting La Bella Principessa in Astana, fostering cultural exchange. Additionally, Air Astana enriched the
library collections of five Kazakh-language schools in Almaty by donating 855 modern illustrated books, fostering educational
growth and cultural identity. These efforts reflect the company’s ongoing commitment to advancing cultural and educational
development in Kazakhstan.
World Knowledge
Day – library initiative
To mark World Knowledge Day on 1 September 2024, we enriched the library collections of five Kazakh-language schools in the
Turksib district of Almaty by donating 855 modern illustrated books, fostering educational growth and cultural identity.
Medical transport
for critically ill
children
Providing air transport for critically ill children remains a key priority. In 2024, four children were able to access life-saving
medical care abroad through our support. We also assisted the Scientific Center for Pediatrics and Pediatric Surgery by
transporting stem cells for a child’s bone marrow transplant.
Sustainable
development
initiative
To promote sustainable development and highlight our commitment to environmental responsibility, in June 2024 we donated
upcycled furniture made from Airbus A321 fuselage materials and Boeing B767 interior structures to the new international
terminal at the Almaty International Airport.
New Year charity
event
Ahead of the New Year, we organised a charity event for children with special educational needs from the Turksib District
Psychological, Medical, and Pedagogical Consultation and the Psychology-Pedagogical Correction Room, providing 190 holiday
gifts and childrens’ travel kits.
Employee-led
initiatives
Volunteers from the IT department took the initiative to collect and refurbish 20 decommissioned system units and 20 monitors,
which were donated to children in need through Connected-ED, a Kazakhstani public foundation focused on bridging the digital
divide.
Additionally, 12 decommissioned system units and 12 monitors were refurbished and donated to the Public Foundation Volunteer
Society Miloserdie, in response to a request from the Bolashak Association, further demonstrating the team’s commitment to
community support.
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
72
Projects implemented in 2024 (continued)
Project Description
Semey Ormany FlyArystan provided financial support to the Semey Ormany reserve by purchasing and delivering 570 briquettes, or 159,600
litres of peat substrate, for growing common pine seedlings. This is equivalent to nearly three greenhouses, capable of growing
1,325,000 seedlings with a closed root system, intended for planting on 315 hectares.
Thanks to FlyArystan’s sponsorship, more than a million common pine seedlings were grown in the greenhouses. As part of the
project’s final phase, Semey Ormany employees decided to plant the seedlings on the forest cultivation land in the Morozov
branch, which is expected to improve the region’s ecosystem recovery.
Support of master
classes for doctors
in the regions as
part of the Heart
Center Foundation
project
FlyArystan worked with the Heart Center Foundation in an initiative aimed at improving medical care quality and the
professional level of doctors in Kazakhstan’s regions. The airline provided free flights for leading specialists from the UMC Heart
Center in Astana to various Kazakh cities to share their expertise.
The joint project between the airline and the Heart Center Foundation began in autumn 2024. Continuing their mission, UMC Heart
Center specialists, supported by FlyArystan, visited Kostanay. The final stage involved a trip to the Kyzylorda region, where the doctors
participated in a scientific and practical conference on Innovative Methods in the Diagnosis and Treatment of Cardiovascular Diseases.
Support for these medical master classes in Kazakhstan’s regions is planned to continue in 2025.
Support of an
inclusive project
aimed at the
rehabilitation of
children
FlyArystan supported the Territory of Success public association, which is involved in the rehabilitation of people with
disabilities, including cerebral palsy and Down syndrome.
FlyArystan supported an inclusive project aimed at the rehabilitation of children. This innovative device plays a crucial role in the
lives of people with disabilities, enabling them to communicate effectively with the outside world. For children and adults with
significant speech and motor impairments, this device serves as a vital ‘bridge’ to full communication, offering a path to
independence, productivity, and active participation in professional and social life.
Project Komek FlyArystan’s corporate social responsibility project Komek has been in operation, officially launched on
1 February 2024. The project’s main goal is to support vulnerable segments of the population by providing discounts on
commercial flights. In 204 total of 554 passengers benefited from the project, including 304 discounted passengers and 250
accompanying persons.
Sustainable resources and relationships Communities continued
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
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73
Our risk management processes help promote a
corporate culture underpinned by risk-averse behaviour.
Risk management is integral to ensuring the long-term resilience
and sustainability of our business, as well as providing a platform
that enables us to respond quickly to changing circumstances.
Our Corporate Risk Management System (CRMS) defines our daily
operational activities, encompassing governance, performance
management and internal control practices. The CRMS is also a
valuable tool for enabling both the Board of Directors and
management to evaluate our options for creating, enhancing
and realising value for our shareholders.
We developed the CRMS in line with, and incorporating,
international best practices in risk management. Our adoption of
the ‘COSO Enterprise Risk Management framework – Integrating
with Strategy and Performance’ as the basis for our Risk
Management Policy further strengthens this alignment. In addition
to the integration of risk management across all internal
processes and functions, the policy ensures we always consider
risks when setting strategies and improving performance.
Risk management framework
To support the development and implementation of efficient risk
management practices and procedures, the CRMS sets out clearly
defined roles and responsibilities for the Board of Directors,
Audit Committee, Air Astana Group Management and each
employee. This also helps to reinforce a culture
underpinned by risk-averse behaviour.
Sets short- and long-term goals/objectives
Approves the Risk Management Policy
Approves other policies for managing specific risks
Analyses the external auditor’s reports for improving internal
control and risk management
Reviews and approves the quarterly Risk Register and Risk Map
Approves the Group’s risk appetite and tolerance to risk
Reviews reports from the head of the structural unit
responsible for risk management with description and analysis
of the Group’s risks
Reviews reports on the efficiency of the CRMS
Reviews quarterly reports on changes to the Risk Map
Reviews changes to the Risk Register
Reviews reports on risks
Reviews risk appetite annually
Reviews quarterly reports on realised risks
Reviews reports on any significant deviations
from the standard risk management process
Reviews reports on non-compliance with regulatory
risk management requirements as necessary
Board of Directors
Primary responsibility for overseeing risk in the
Group and risk management functions.
Audit Committee
Acts in the interests of shareholders and helps
the Board oversee the reliability and efficiency
of the CRMS.
Approves the annual strategic plan for the CRMS
Organises an efficient CRMS to enable the identification and assessment of potential risks
Reviews and approves the quarterly Risk Register and Risk Map
Reviews and provides preliminary approval of the annual risk appetite
Reviews quarterly reports on realised risks
Reviews and approves the Key Risk Indicator (KRI) panel annually and considers the status of KRIs
Reviews and approves risk management action plans on risks deemed only partially effective or
not effective
Reviews risk management reports and considers whether adequate measures have been adopted
Improves internal risk management procedures
Principal risks and uncertainties
Successful risk management
is fundamental to
business longevity
and sustainability
AIR ASTANA GROUP Integrated Annual Report 2024
74
fulfilling our promises
Risk Committee
An advisory-consultative body to the CEO, providing preliminary reviews and
recommendations for decision-making on risk management issues. Also responsible for
the integrity and efficient functioning of the CRMS and the development of a risk control
structure that ensures performance and compliance with our policies.
Risk responsibilities
To provide a balanced approach to managing risk, we have adopted the
Three Lines of Accountability model within our operating structure. The
three lines collaborate and communicate regularly to ensure a
comprehensive understanding of risks and controls.
First Line: Air Astana Group structural units and all employees
Structural units and all
employees participate in
identifying, assessing and
managing risk within their areas of
responsibility.
Control implementation: Designing,
implementing and maintaining day-to-day
internal controls to manage risks within the
scope of supervised or performed operations.
Monitoring and reporting: Continuously
monitoring operational performance and
reporting risk-related issues and control failures
to the Risk Management unit.
Issue resolution: Taking corrective action to address
control deficiencies and mitigate risk.
Third Line: Internal Audit Service
Internal audit assesses the
adequacy and effectiveness of our
risk management system, and
develops recommendations
(including involving external
independent consultants).
Risk-based audits: Conducting independent
assessments of risk management, control
processes and governance practices.
Evaluating controls: Reviewing the adequacy and
effectiveness of the CRMS implemented by the first and
second lines.
Reporting and recommendations: Providing findings,
insights and recommendations to improve the control
environment and risk management practices.
Follow-up: Monitoring the implementation of audit
recommendations and corrective actions.
Second Line: Risk management, internal control and compliance functions, including corporate
safety compliance and aviation security
The second line oversees and
supports the first line. It includes
specialists of risk management
and compliance functions that
oversee and facilitate effective risk
management practices.
The main functions of the Risk
Management Unit include, but
are not limited to:
Policy development: Establishing risk management policies, regulations, manuals and procedures
Guidance and training: Providing guidance and training to the first line on risk management and
compliance requirements. Developing a risk culture within the Group
Overseeing risk: Coordinating corporate risk-management activities and ensuring the first line adheres to
policies and procedures
Monitoring compliance and effectiveness: Assessing compliance with regulatory requirements and
internal policies, and monitoring the effectiveness of risk management actions
Reporting: Providing independent risk management and compliance reporting to the Risk Committee,
Audit Committee and Board of Directors
Principal risks and uncertainties continued
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AIR ASTANA GROUP Integrated Annual Report 2024
75
Risk name Description Mitigation
Safety risk
Risk level
Risk exposure trend
Link to strategy
Effective safety management is critical
to minimise the potential for incidents
or accidents. The resulting effects of
such events could have a significant
adverse impact on us.
To mitigate risks related to flight safety, we have established a safety-management
and compliance-monitoring system, through which we conduct compliance and
performance-monitoring audits, and set and monitor safety-performance indicators.
We have a human-factors training programme, and place specific emphasis on
procedural compliance. Specifically in the area of flight-operations training, we have
invested significantly in training instructors with a strong emphasis on
standardisation. There are regular independent assessments by regulatory
authorities, EASA, and CAC Kazakhstan, as well as industry assessments IOSA.
Aviation-security risk
Risk level
Risk exposure trend
Link to strategy
Consequences of aviation-security risk
could adversely affect any airline’s
performance and reputation. Effective
management of aviation security risk
is, therefore, essential to us.
We have all the required policies and procedures for managing aviation security.
The Aviation Security Division reviews these policies regularly. We provide training
on aviation security to all required employees and for those whose duties involve
access to the airport restricted area. We carry out airport audits for compliance on a
regular basis, ensuring aviation security. We also ensure resilience on all operational
fronts, with safety and security being the top priority at all times. The aviation-
security risk level has been reduced due to enhanced security measures, regular
risk assessment and improved cooperation with authorities.
Commercial risk
Risk level
Risk exposure trend
Link to strategy
Factors such as intensive market
competition, government intervention,
operational limitation, geopolitical
tensions and rising costs can create
challenges for us.
In 2024, the Air Astana Group implemented several mitigation actions in response to
the evolving aviation market in Kazakhstan and the expansion of its network. With
new destinations introduced by both Air Astana and FlyArystan, we focused on
proactive risk management by optimising network efficiency, adjusting frequencies
based on demand, and strategically allocating fleet capacity. Continuous monitoring
of domestic and global market trends allowed for timely responses to operational
challenges, ensuring sustainable growth and enhanced resilience.
Human-resources risk (part of ESG risks)
Risk level
Risk exposure trend
Link to strategy
Our Human Resources Policy is
designed to ensure we retain and
recruit qualified personnel, capable of
performing their duties effectively and
productively in line with our strategic
goals and values, while complying
with professional and ethical
regulations. We consider our employees
to be one of our main assets.
We have fostered equality in the workplace, ensuring a discrimination-free
environment where people can thrive regardless of gender, age, ethnicity, religion
or cultural background. Managing human-resources risk involves key areas,
including recruitment, retaining key personnel, improving the employee experience,
providing easy access to resources, and facilitating training and development. Our
HEART values remain a priority in maintaining our working environment.
Link to strategy
Risk level Risk exposure trend
Growth
Very high
High Moderate
Low
Efficiency Excellence
No change Decrease Increase New risk
Principal risks and uncertainties continued
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
76
Risk name Description Mitigation
Health, safety and environment (H&S) risk (part of ESG risks)
Risk level
Risk exposure trend
Link to strategy
We understand our moral and ethical
responsibility to ensure the health and
safety of our employees, doing all we
can to protect their physical and
mental wellbeing. In occupational
health and safety, we comply with
national, legal and other regulatory
requirements, and international rules
of the aviation industry.
We follow all the procedures needed to provide a high level of occupational
safety. Our employees are aware of them and kept informed of any changes in
instructions, which are regularly updated in line with Government guidelines.
To reduce and recycle waste, we educate our employees through instructions,
posters, and events focused on environmental protection. In line with the
Ecological Code of the Republic of Kazakhstan, we receive an environmental-
impact declaration for solid, hazardous and non-hazardous waste. We collect and
sort waste for:
third-party disposal by specialist companies (for hazardous waste such as oil,
used filters, rechargeable batteries, worn tyres, residues of solvents, paintwork
materials, aggressive liquids, and used mercury-containing lamps)
waste dumping (solid waste)
scrap metal, paper waste and PET recycling
Service-quality risk
Risk level
Risk exposure trend
Link to strategy
A high level of service is central to our
activities. Failure to provide it could
damage our reputation, cause us to
lose customers, and lead to a
reduction in the Skytrax ratings for Air
Astana and FlyArystan.
We aim to provide an exceptional experience for our customers throughout their
journey. We offer extensive training programmes to ensure all employees who
interact with customers maintain their skills at a high level. We analyse customer
feedback, and determine how satisfaction scores are affected by product and
service changes across different stages of travel.
Climate-related risk
Risk level
Risk exposure trend
Link to strategy
(for more information
see section below,
‘Managing climate-
related risks’).
The aviation industry faces a complex
array of climate-related risks that
require proactive management as part
of its ESG Strategy. Addressing both
chronic and acute risks will require
significant investment in infrastructure,
technology and operational changes.
There’s also a need for more openness
and involvement with stakeholders, as
we make the transition to a low-carbon
economy.
We promote sustainable and resilient growth through our sustainability stewardship
and adherence to evolving environmental regulations. With rising global
temperatures, changes in climate can affect aircraft performance, particularly during
take-off and landing, causing significant disruption to flight operations, which can
lead to delays, cancellations and increased operational costs.
Principal risks and uncertainties continued
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
77
Risk name Description Mitigation
External-communication risk
Risk level
Risk exposure trend
Link to strategy
A positive reputation and the brand
loyalty it generates can be a major
advantage. The roles of brand image,
price, service quality, brand preference,
and brand loyalty reflect our
competitiveness and are intangible
assets.
To operate in the marketplace, we aim to maintain a positive organisational
character with customers, suppliers, business partners, employees and the
surrounding community. We must also manage our reputation and credibility with
the media and regulators, while improving investor sentiment.
Credit risk
Risk level
Risk exposure trend
Link to strategy
We are exposed to credit risk, which is
the risk that a counterparty will cause
us to suffer a financial loss by failing
to fulfil its obligation. Our credit risk
arises mainly from deposits with banks
and other financial institutions, held
by counterparties, as well as from
receivables including those from
agents selling commercial air
transportation. We use external
ratings, such as S&P Global Ratings
or its equivalent, to measure and
monitor our exposure to credit risk
with financial institutions. The default
of a bank counterparty may adversely
affect our financial performance and
stability.
Our Cash Management Policy sets the limits and criteria for counterparty banks.
It also establishes standard procedures, such as monitoring our use of bank limits,
actual or forecasted exposure to accredited banks, and reporting to the Chief
Accountant, Chief Financial Officer (CFO) and the Board of Directors. We review
internally the new limits for each bank before submitting them to the Board
of Directors.
We review the policy annually to ensure it is fit for purpose. Also, to manage
credit risk from other counterparties, we have policies and stringent procedures
in place, and update them regularly.
Our Travel Agent Ticketing Authority Policy establishes guidelines and criteria for
authorising travel agents to issue tickets. It ensures authorised agents have a
sound financial standing and adhere to specific standards, reducing the likelihood
of defaults. Requiring prepayments and cash deposits from direct agents adds
an additional layer of security, giving us a financial guarantee and reducing the
impact of defaults or delayed payments.
Liquidity risk
Risk level
Risk exposure trend
Link to strategy
Liquidity risk is the risk that we may
not be able to meet our present and
future short-term obligations when
they fall due. We retain the financial
flexibility to pursue business
opportunities, and we have access to
the liquidity we might need to
mitigate the effect of unforeseen
events on cash flows.
We closely monitor our liquidity position through different ratios (current ratio and
cash to sales ratio) and continually seek opportunities to obtain banking and other
financial products on the most favourable terms. The successful IPO in Q1 2024
strengthened our liquidity position, providing additional funds to support growth
and financial stability.
Principal risks and uncertainties continued
Link to strategy
Risk level Risk exposure trend
Growth
Very high
High Moderate
Low
Efficiency Excellence
No change Decrease Increase New risk
78
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
Risk name Description Mitigation
Jet-fuel risk
Risk level
Risk exposure trend
Link to strategy
Fuel expenses remain one of our major
costs and, like the entire industry, we
continue to face risks from high
fuel-price volatility. In 2024, fuel prices
remained elevated due to ongoing
geopolitical tensions, supply-chain
disruptions and production constraints.
As a consequence, jet-fuel risk remains
one of our most critical.
For locally sourced fuel, we negotiate prices on a competitive basis with
Kazakhstani suppliers using agreed and stable contracts. We also maintain
ongoing negotiations with suppliers regarding price reductions. Another important
aspect is our monitoring of alternative suppliers for domestic and international
stations. Where there are no restrictions, we also apply a fuel surcharge on
international routes as an additional tool for reducing risk.
To reduce our overall consumption of fuel, we have added new, more fuel-
efficient aircraft to our fleet in recent years. These include the Airbus A320neo,
Airbus A321neo and Airbus A321LR (with a new engine option). Additionally,
several of our pilot-training programmes include skills for efficient fuel
management.
Operational risk
Risk level
Risk exposure trend
Link to strategy
Operational risk is where we could
incur losses as a result of ineffective
operation activities, such as an excess
or shortage of operating aircraft, low
on-time performance or pilot
shortage.
The risk of not being able to carry out regular flight operations on time due to
technical or external reasons can lead to significant costs and reputational
damage. We undertake regular delay analysis and delay meetings, and we
employ the required number of qualified pilots in line with our annual plan, using
a proven recruitment process. We also provide relevant training to ensure that we
maintain the highest professional standards.
Due to external engine issues, we pay particular attention to the risks relating to
fleet size. To manage these, we deliver and redeliver aircraft according to an
approved fleet plan and based on market conditions.
Cyber and information-security risk
Risk level
Risk exposure trend
Link to strategy
Cyber risks are critical in the airline
sector, as the use of technology is
increasingly integrated into business
processes. With greater reliance on
technology, companies are now more
exposed to cyber-attacks that could
lead to data leakage and significant
reputational and financial losses.
To manage these risks, we have strong cyber-security measures in place, and
we have developed processes to comply with the best industry practices and
standards in information security. Our employees undergo regular training on
information security and familiarisation with our Information Security Policy.
During the extensive period of remote working caused by the global pandemic,
we ensured the security of our internet connections by using VPNs and multi-
factor authentication.
Principal risks and uncertainties continued
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AIR ASTANA GROUP Integrated Annual Report 2024
79
Risk name Description Mitigation
The risk of the failure or severe degradation of mission-critical IT infrastructure
Risk level
Risk exposure trend
Link to strategy
Our key processes depend on IT
services and infrastructure, so
effective and resilient IT management
is essential.
To mitigate this risk, we use various required systems and equipment, and carry
out regular updates of operational systems and firewall software. We store all
critical data appropriately, and create and monitor online and offline back-ups. To
decrease the risk of virus or hacker attacks, we use antivirus systems and
firewalls, limit access to local and internet resources, and regularly update our
security systems and applications. Also, regular external audits increase our
resilience to internal and external risk factors.
Our IT infrastructure is fully geared to support business continuity within the best
possible limits, with redundancy and back-up systems in place.
Compliance risk (part of ESG risks)
Risk level
Risk exposure trend
Link to strategy
Facing regulatory non-compliance,
including sanctions breaches,
alongside risks of corruption, fraud
and unethical behaviour, represents a
risk to us. These issues can result in
legal penalties, financial losses, and
reputational harm, underscoring the
need for stringent compliance
frameworks and ethical governance.
We manage risks relating to non-compliance, sanctions breaches and unethical
behaviour through a proven compliance-management system. This includes
vigilant monitoring of legislative updates, rigorous due diligence, and sanctions
screening of all counterparties to ensure adherence to legal and ethical standards.
The system is bolstered by transparent reporting mechanisms, such as
whistleblowing lines. We provide comprehensive training for employees, focusing
on corporate ethics, the prevention of conflicts of interest, sanctions and
compliance issues. Through these measures, along with continuous monitoring
and improvement processes, we not only address potential and actual compliance
risks but also reinforce our high standards of integrity and ethical conduct,
safeguarding our reputation and operational success.
Insurance
We enhance our risk management
framework by continuously evaluating its
insurance strategies in response to evolving
industry challenges. While complying with
regulations and our own policies, we aim to
ensure sustainable operations by obtaining
the financial protection of our employees,
liabilities and assets, through insurance. We
purchase financially sound insurance
coverage through a transparent process, and
review this annually.
Aviation insurance
We place our aviation risks in the world’s
leading insurance markets through
internationally reputable brokers. We cover
them through the following policies:
Aviation Hull, Total Loss Only, Spares All
Risks and Airline Liability Cover
Aircraft Repair and Operational Support
(Hull deductible) Cover
Aviation Hull and Spares ‘War and Allied
Perils’ Cover
Aviation War, Hijacking and Other Perils
Excess Liability Cover
Non-aviation insurance
We also purchase a range of non-aviation
insurance policies. These include covering
our employees for accidents and medical
expenses, reducing the financial risk of
damage to our property and interruptions
to our business, and general liability.
Link to strategy
Risk level Risk exposure trend
Growth
Very high
High Moderate
Low
Efficiency Excellence
No change Decrease Increase New risk
Principal risks and uncertainties continued
fulfilling our promises
80
AIR ASTANA GROUP Integrated Annual Report 2024
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AIR ASTANA Integrated Annual Report 2024
81
Established in 2001 and operational since
2002, Air Astana is Kazakhstan’s flag carrier
and largest airline brand by revenue and
fleet size in the Central Asia and Caucasus
region. As a full-service airline brand, it
provides scheduled, point-to-point and
transit, short-haul and long-haul air travel
and cargo on domestic, regional and
international routes across Central Asia,
the Caucasus, the Far East, the Middle East,
India and Europe.
The airline has been instrumental in opening
up the huge country of Kazakhstan, the ninth
largest in the world, and roughly the size of
Western Europe. Its tourism and business
routes, operating from Almaty and Astana,
allow it to reach Central Asia, the Caucasus,
Europe, the Middle East and Asia with its
mostly narrow-body fleet.
Air Astana’s operating model has changed
considerably since 2002, with agile responses
to the Covid pandemic and more-recent
international conflicts. Its recovery from the
pandemic was outstanding. Air Astana took
advantage of the population’s desire to travel
further afield, and has grown on a fairly steady
trajectory by offering new flights, initially to
where PCR tests allowed – the Maldives,
Thailand, Montenegro. Given the new desire
of customers to travel, the airline soon added
flights to Egypt, Greece, Georgia, Turkey and the
UAE. More recently added destinations include
China, India, the Middle East, South Korea, Sri
Lanka and Vietnam.
A full-service carrier brand
Air Astana services a broad network of
locations within an approximately seven-hour
radius of at least one of its Kazakhstan base
airports, accompanying the more-domestic
network of its subsidiary brand FlyArystan.
This allows it to service international routes to
multiple locations across Europe and Asia. Its
partnership strategy is to work with carriers
that provide compelling network distribution
and opportunity from its hubs, and it currently
has eight codeshare partners and 84 interline
agreements. It operates a fleet of young,
modern fuel-efficient aircraft with a two-class
configuration across the Airbus A320 family
and Boeing 767.
The year’s highlights
The network of Group continues to grow with 21
new routes added in 2024 (12 Air Astana new routes
and 9 FlyArystan). Air Astana expanded capacity on
its China routes following high demand. It
strengthened connections to South Korea with
flights twice-weekly from Astana and daily from
Almaty, to Seoul. It also announced new lifestyle
destinations in Vietnam and new route Astana-
Phuket, and boosted presence in the Middle East
with direct flights to Jeddah and Medina
In August, Air Astana announced a new codeshare
agreement with Japan Airlines (JAL),
one of the world’s best airlines, which will facilitate
connectivity between Kazakhstan and Japan with
the upcoming 2026 Almaty-Tokyo route
In late 2024, Air Astana established a significant
partnership with Etihad Airways, enabling customers
to access key destinations across India, the Middle
East, and Africa via Abu Dhabi
In September, it successfully completed the
installation of the first additional central fuel tanks
on the Airbus A321LR, extending their range and
enabling non-stop flights over long-haul distances.
This enabled the operation of 8- and 9-hour flights
and the relaunch of non-stop Almaty – London
service, which previously required a technical stop,
as well as services to Phu Quoc and Phuket. This
modernisation is a key component of the long-term
strategy to enhance operational efficiency. It
incorporates all the necessary technical and safety
features, and improves operational performance
The airline signed the operating lease of seven
additional Airbus A321neo LRs, with deliveries
expected to start from 2026, reflecting its confidence
in the future of Kazakhstan as an air-transport hub
In early 2025 the Group has signed an Memorandum
of Understanding (MoU) with China Southern
Airlines, China’s powerhouse airline, for a
comprehensive set of codeshares across China,
Kazakhstan and, subject to third country bilateral
agreement, other countries in East Asia, Central Asia
and Caucasus. This key partnership, once the MoU
has been translated into a concrete agreement, will
accelerate the Group’s expansion into this
neighbouring megamarket
Around 15% of passengers are taking connecting
flights, a figure expected to rise following the
opening of the new terminal at Almaty International
Airport in June 2024, with tripled terminal area,
increasing annual capacity at the airport from 8 to 14
million passengers per year. The new terminal
resolves the capacity bottleneck at the Group’s main
base and provides additional capacity for further
growth in the future
Air Astana implemented many initiatives to enhance
customer experience in 2024, including an upgraded
website and developed mobile app which will be
launched in 2025, revamped frequent flyer
programme, opened a new dedicated lounge
in Almaty and an upgraded lounge in Astana,
enhanced customer feedback opportunities, and
mobilising non-operational employees to help
passengers at Almaty during peak travel periods
Opportunities for further growth
Air Astana believes it has seen only the beginning
of the potential of the region, a view confirmed
by IATA forecasts and market analysis. Central
Asia is leading the growth in traffic across Asia,
with its strong aviation performance partly
attributed to overflight restrictions due to the war
in Ukraine. As more routes from Europe to
Southeast Asia and the Middle East are redirected
through this subregion, the Central Asian market
is expected to continue outperforming in the near
future, given the ongoing geopolitical situation.
The Kazakh market for both domestic and
international travel has much scope to grow
before it catches up with other markets with
similar demographic and economic parameters.
The country’s emerging middle class is increasing
its propensity to fly, and tourists from around the
world are beginning to discover Kazakhstan as a
unique and relatively untouched travel
destination.
Central Asia generally is becoming more of a
destination, for business and for leisure, and there
is huge potential in the Indian market,
with the increasing interest of Indian tourists
in Central Asian destinations. Other countries
and regions seen as strategic for Air Astana’s
continued overseas growth include China, the
Gulf, Japan, Korea, Saudi Arabia and Western
Europe. In addition, many overseas businesses
and investors in oil, gas and minerals tend to have
their headquarters in Astana, encouraging
business travel from, in particular, China, Korea
and the UAE. Working in this positive market
environment, Air Astana has a clear path forward
through its solid strategy encompassing growth,
efficiency and excellence.
Operating review
Connecting Kazakhstan
to the world
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
82
Load factor (%)
81.8%
2023: 80.1%
RPK (bn)
11.0
2023: 10.0
ASK (bn)
13.4
2023: 12.5
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
83
Air Astana Group’s low-cost airline,
FlyArystan, operates independently,
making the most of the low-cost carrier
(LCC) operational model used in Asia,
the US and Europe to offer consistently
low fares and stimulate demand in
underserved markets. Flying from
three of Air Astana Group’s bases in
Kazakhstan, it provides scheduled and
charter short-haul and medium-haul air
travel across the country and further
into the Caucasus, Central Asia, Turkey
and the Middle East.
A history of rapid growth
Established in 2019, FlyArystan was one of
the first LCCs in Central Asia. Since its launch,
it has grown to become the market leader in
Kazakhstan, providing 4.2 million passengers
with low-cost air travel in 2024, and
expanding the fleet from four to 23 aircraft
by the end of 2024. It now flies 59 routes
including domestic and international, with a
domestic market share of 40%. Much of
this success is due to maintaining high
service standards: within three years of
launch, FlyArystan became one of 13 LCCs
globally to be certified as a 4-Star Low-Cost
Airline, with no LCC receiving a 5-Star rating.
Playing a distinctive role
Although still wholly owned by the Air
Astana JSC, FlyArystan is run as a separate
organisation from an operational and
marketing perspective, complementing the
full-service Air Astana brand. By operating
two distinct brands, the Group covers more
routes and serves more destinations than
any other airline in Kazakhstan, Central
Asia and the Caucasus.
The Group has managed the growth of these
two distinct brands in parallel, with limited
cannibalisation. While Air Astana focuses
mainly on business and lifestyle travel,
FlyArystan is positioned as a low-cost market
disrupter, targeting price-conscious customers.
Its expanding network is in the domestic
and near-home markets within a four-to-
five-hour radius of its three bases. FlyArystan
operates Airbus A320 aircraft, configured to
support high-density, single-class seating.
Stimulating local demand
FlyArystan has been instrumental in growing
the Kazakh air-travel market by encouraging
more people to fly. In a large country, where
significant distances separate cities, a
three-hour flight at the right price is highly
preferable to a 24-hour rail trip – and
FlyArystan is the leading provider of those
low-cost flights, making air travel attainable
for a greater proportion of the Kazakhstan
population.
Since commencing operations in May 2019,
the airline has carried 15 million passengers,
with almost 11 million of those being
domestic travellers. FlyArystan, established
as a social initiative to enhance aviation
mobility for Kazakhstanis, has played a vital
role in driving domestic passenger growth.
In 2024 alone, the airline transported 4.2
million passengers, an increase of 15.5%
year-on-year, with more than 10%
experiencing their first-ever flight. As Central
Asia’s first low-cost carrier, FlyArystan has
transformed Kazakhstan’s aviation sector
by making air travel more affordable and
fostering a new travel culture in the region.
Opportunities for further growth
Operating with one of the lowest CASKs
(Cost per available seat kilometre) among
internationally comparable LCCs, FlyArystan
can expand to cover new routes more
profitably than its competitors. Also, those
LCCs have their bases outside the Central
Asia and Caucasus region, making it more
difficult to access the markets FlyArystan is
targeting for network expansion.
In addition, there are new opportunities
to expand FlyArystan across international
routes within its optimal stage length of
four to five hours. With hub airports in
North, South-East, and West Kazakhstan,
it can increase its radius to include new
routes and destinations, making the most
of growth opportunities in Western and
Central China, India, Saudi Arabia, and the
Gulf. FlyArystan has also established
several strategic initiatives to increase
ancillary revenues.
The year’s highlights
In April 2024, FlyArystan received its own
AOC from the AAK. Before this, the airline
had operated under the Air Astana AOC.
Now, with its own AOC, it can align
operations more effectively with its LCC
model and pursue additional growth
opportunities
Having its own IATA code, FS, granted in
April 2024, allows it to expand globally
and establish strategic partnerships with
other airlines
ICAO Code (AYN) and ICAO Call Sign
(Arystan) granted in February 2024
IATA Accounting Prefix Code 164
granted in July 2024
As part of the airline’s ongoing
expansion, it took delivery of five
new aircraft during the year
In May 2024, Richard Ledger was
appointed as the President of FlyArystan,
bringing almost 18 years’ management
experience within the Air Astana Group
FlyArystan won the Best Low-Cost Carrier
in Central Asia and CIS award from Skytrax
for the second time. It also retained its
Skytrax 4-Star LCC status
Service and software upgrades included
mobile app enhancements to sign-in,
booking management and check-in,
Google Pay and China Union Pay
integration, flight status service
now offering real-time accuracy,
kiosk software upgrades and a
new bag-drop facility at Almaty
Operating review
An award-winning
low-cost carrier
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
84
Having accelerated the growth of air
travel in Kazakhstan, FlyArystan has
boosted its own growth by serving
in-demand destinations at attractive
prices. And now this trend continues,
as the airline explores more routes and
offers passengers a greater range of
products and services.
Richard Ledger, President of FlyArystan
Load factor (%)
87.3%
2023: 89%
RPK (bn)
5.2
2023: 4.6
ASK (bn)
5.9
2023: 5.2
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
85
Operating review
Strategically planned growth
In 2024, the Air Astana Group delivered
on its strategy with significant growth
and record passenger numbers, while
carefully managing yield and controlling
costs, despite of industry-wide
revenue and cost pressures as well
as capacity constraints.
The Group carried nine million passengers
across both airline brands during the year at
an improved load factor of 83.5% (2023: 82.8%).
This is almost one million passengers more
than in 2023, driven by growing demand for
air travel across Kazakhstan, our extended
home market and nearby megamarkets.
This resulted in a strong financial performance
with total revenue* for the Group increasing to
USD 1,308 million (2023: USD 1,164 million) and
adjusted EBITDAR* grew 16.1% to USD 338.6
million (2023: USD 291.6 million), ahead of ASK
growth of 9.2%.
New routes and network
expansion
The Group’s strategic location in the heart
of Eurasia makes it uniquely positioned
to benefit from increased air travel in its
underserved extended-home market, the
world’s fastest-growing aviation region
according to IATA, and provides close
access to Asian megamarkets.
Both Air Astana and FlyArystan have
continued to increase capacity and launch
new international and domestic routes. While
capacity allocation has always been based
on supply and demand with a close focus
on route profitability, this was particularly
important in 2024 as industry-wide cost
inflation and supply-chain pressures required
higher yielding routes to be prioritised. In the
period, this resulted in increased capacity
allocated to destinations across Asia at the
expense of the European market.
As at 31 December 2024, the Group’s
passenger network covered 107 routes
(74 international and 33 domestic),
45 destinations in 22 countries.
The Group further expanded its network in
2024 with 21 new routes and destinations to
high-demand regions across Asia, including
India, China, Vietnam and the Gulf.
The proximity of the two megamarkets of
China and India represents a significant growth
opportunity with strong demand requiring
improved connectivity. Passengers carried to
China and the Far East rose 33% year-on-year
and the Group retains many unutilised traffic
rights in China, allowing future growth as
ongoing capacity restrictions are lifted. The
Indian market, which is currently seeing a steep
rise in outbound tourism, is also a key area of
expansion with 50% more passengers carried
by the Group in 2024 compared to the prior year.
The Group also boosted its presence in the
Gulf in 2024 by expanding to destinations
such as Abu Dhabi, Dubai, Jeddah and
Medina. Passengers carried to the Middle
East, including the key Gulf states, increased
28% year-on-year.
New winter services were added from
Atyrau-Dubai, Astana-Abu Dhabi and
Almaty-Abu Dhabi, building on the Group’s
existing 20 services a week from Almaty and
Astana to Dubai and six services a week from
Almaty and Shymkent to Saudi Arabia. This
expansion reflects the rapid growth in
business and leisure traffic between Kazakhstan
and the region, contributing to wider
economic development in western Kazakhstan
by enhancing connectivity with important
business and tourist centres in the Gulf.
A robust charter programme also supported
seasonal demand, with services to Antalya,
Batumi, Bodrum, Colombo, Doha, Male,
Phuket, Sanya (China) and Sharm El Sheikh.
In 2025, the Group has already further
expanded its network across Asia with the
introduction of eight new routes including
Guangzhou in China (in addition to Beijing,
Urumqi and Sanya), Mumbai (in addition to
Delhi) and seasonal flights to Nha Trang in
Vietnam (in addition to Phu Quoc).
* Excluding non-recurring items: Net IPO related expenses of
USD 1.8 million in 2023/USD 12.9 million in 2024. Revenue from
the extraordinary market event impacted by partial mobilisation
in Russia of USD 11.0 million in 2023. RASK adjustment of USD
4.2 million in 2024. Donations of USD 2.7 million in connection
with the flood situation in Kazakhstan in 2024.
fulfilling our promises
86
AIR ASTANA GROUP Integrated Annual Report 2024
Operating review Strategically planned growth continued
Installation of additional fuel
tank on A321LR
The Group is widening its network capabilities
by retrofitting a third fuel tank on its fleet of
Airbus A321LR, bringing new destinations
within extended range of narrow-body aircraft.
An initial four additional fuel tanks have already
been installed at the Group’s own technical
facilities, bypassing supply-chain delays at
Airbus. The Group is ideally positioned to utilise
the extended range in all directions, with
possibilities for new routes in Asia, the Middle
East, Europe and potentially beyond. To date, it
has already enabled the launch of non-stop
flights on some of Air Astana’s longest routes,
including Almaty-London, Almaty-Guangzhou,
Astana-Phu Quoc and Astana-Phuket flights, as
well as Almaty-Tokyo from 2026.
The modification also represents a key part of
the Group’s long-term strategy to enhance
operational efficiency. The modification
incorporates all the necessary technical and
safety aspects and, by operating non-stop to
long-haul destinations, significantly improves
performance and reduces travel time.
Enhanced strategic
partnerships
Air Astana continued to expand its global
network through enhanced strategic
partnerships. These enable the airline to
participate in passenger itineraries it may
not otherwise have considered through
codeshare and interline agreements, often
with national flag carriers. They also allow for
marketing initiatives, cooperation on loyalty
programmes, and enhanced service levels
at airports through aircraft and maintenance.
By the end of 2024, Air Astana had established
nine codeshare partnerships with interline
partners delivering over 150,000 passengers
(approximately 8% of Air Astana international
traffic). In August, the airline signed a new
codeshare agreement with Japan Airlines,
facilitating seamless connectivity between
Kazakhstan and Japan on the upcoming
Almaty-Tokyo route in 2026. In November, Air
Astana begun codesharing with Etihad Airways,
the UAE’s national flag carrier, to offer a greater
choice of destinations across the Gulf.
Air Astana has now also signed an MoU with
China Southern Airlines, China’s powerhouse
airline, for a comprehensive set of codeshares
across China, Kazakhstan and, subject to third
country bilateral agreement, other countries in
East Asia, Central Asia and Caucasus. This key
partnership, once the MoU has been translated
into a concrete agreement, will accelerate our
expansion into this neighbouring megamarket.
The Group is exploring further potential
Enhanced Strategic Partnerships.
Fleet development
The Group maintains a modern, fuel-efficient fleet of Airbus A320
family aircraft, alongside three Boeing 767 aircraft for longer
international routes flown by Air Astana.
The Group continues to expand its fleet to support its growth objectives
and meet rising demand in its extended home market. The Air Astana
brand took delivery of five aircraft in 2024, expanding its fleet to 34.
FlyArystan also took delivery of five aircraft in 2024, expanding its fleet
to 23, which further increased to 25 in early 2025, exclusively made up
of the A320 family of aircraft.
Alongside capacity expansion, the process of simplifying the fleet is
nearing completion. Following the early retirement of the Boeing 757
fleet, the last of which departed in early 2021, the Group has been
phasing out its fleet of Embraer E190. Two Embraer E190-E2 have
been redelivered in 2024, bringing the total fleet to 57 at the end of
2024. This is now the simplest fleet profile the Group has ever had in
its 23 years of existence.
In July, the Group signed an agreement with Air Lease Corporation for
the operating lease of seven Airbus A321neo LR aircraft with deliveries
taking place starting from 2026. The Group now expects to increase the
total fleet to 84 aircraft by the end of 2029, comprising 54 Air Astana
and 30 FlyArystan aircraft, extending the previous guidance of 80 by the
end of 2028.
34
Air Astana fleet
23
FlyArystan fleet
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
87
Operating review Strategically planned growth continued
FlyArystan AOC
Since its launch in 2019, FlyArystan has grown into
the market leader in Kazakhstan while operating its
separate brand under the AOC. The airline has now
reached such a size and level of operational
complexity that it makes strategic sense to operate
under the Air Astana AOC to further grow and
develop, while remaining a wholly owned
subsidiary of Air Astana JSC.
FlyArystan was issued its own AOC on 1 April 2024
following an extensive audit and examination
process by the Aviation Administration of
Kazakhstan, demonstrating the airline’s adherence
to both domestic aviation legislation and
international operational standards. This enables
the brand to align operations more effectively with
its LCC model and pursue additional growth
opportunities with its own IATA code (FS).
New International Terminal at
Almaty airport
Located in the largest city in Kazakhstan, Almaty
airport is the country’s busiest airport and the
principal operating hub for the Group; however it
has been held back by operating a single terminal
for both domestic and international flights. The
inauguration of a new International Terminal at
Almaty airport on 31 May 2024 is therefore an
important development for both the Group and the
wider aviation industry in Kazakhstan. Air Astana
operated the first flight to the terminal, carrying
passengers from London, on 1 June 2024 and by
mid-June all the Group’s international flights had
been smoothy transferred.
The new 54,000m
2
terminal has tripled the terminal
area, increasing annual capacity at the airport from
8 to 14 million passengers per year. The new
terminal resolves the capacity bottleneck at the
Group’s main base and provides additional capacity
for further growth in the future. It also frees up
space at the existing terminal, which can now be
exclusively dedicated to meet the high growth in
domestic demand.
Successfully mitigating Pratt & Whitney engine
issues
The industry continues to be adversely impacted by supply-chain
challenges arising from Original Equipment Manufacturer’s (OEM),
including Pratt & Whitney, and the impact of the contaminated
powdered metal problems of PW1100G engines. The Group
recognised the issue early and took proactive action ahead of the
wider industry, successfully ensuring high fleet utilisation during peak
season and reducing the impact on overall performance.
Actions taken under the Group’s Mitigation Plan
►
Proactively rested engines during the low season to ensure high
deployment during peak season
►
Performed 93 PW1100G in-house engine replacements in 2024
►
Secured 13 spare engines
►
Took delivery of a further four A320ceo family aircraft (with an
additional A320ceo delivered in Q1 2025)
These actions successfully mitigated the disruption caused by fleet
groundings, which has presented challenges across the industry in
increasing capacity to meet rising demand. As a result, the Group
was able to operate at near full capacity during peak season when
returns are highest. The Group also leveraged the flexibility of its
dual brand model, whereby Air Astana and FlyArystan are
independently managed, to compete internally for margins and
allocate capacity to the most profitable routes. This ensured that
RASK growth offset the rise in CASK, protecting yields and improving
profitability ahead of capacity growth.
In March 2024, the Group reached an agreement with Pratt &
Whitney for compensation and other support in recognition of the
impact to the Group’s operations arising from GTF neo engine
availability issues.
The engine-off wing time assumption for this issue remains 18
months. Although the Group is now being delivered completely fault-
free engines by Pratt & Whitney, the issue is expected to persist and
require proactive mitigating actions for the foreseeable future.
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
88
Operating review
Improving efficiency across
all our operations
The Group is one of the most efficient
airline groups globally with respective
EBITDAR margins of 28% and 25% for
FlyArystan and Air Astana placing the
airlines consistently among the highest
in the industry. This is underpinned by
the Group’s young, modern and
fuel-efficient fleet and investment in
its own facilities and training.
Management is constantly reviewing
initiatives and new technologies to deliver
additional operational and cost efficiencies,
including a strategic plan to bring the Group’s
operations in-house, resulting in more
efficient and higher quality operations, while
also turning traditional costs into profit
centres by servicing other airlines.
Advanced Technical Centre
In 2024, the Group continued to invest in its
Advanced Technical Centre (ATC), an in-house
facility for maintaining aircraft to the highest
industry standards. The Group performed
seven C-checks in 2024 and expanded its
capability to the most comprehensive 12 Year
C-checks on the Airbus fleet, the first ever to
be conducted in Kazakhstan. The ATC
delivered significant operating efficiencies for
the Group in 2024 and is expected to deliver
increased savings going forward. In addition,
the Engineering and Maintenance unit
provided line maintenance to 58 domestic
and international airlines.
New hangars in Almaty and
Astana
Plans are currently being developed for the
construction of new hangars in Almaty and
Astana, expanding maintenance capacity
across the Group’s main two hubs, further
reducing costs and introducing the
opportunity to provide scarce and high-value
heavy maintenance to external customers.
The construction of the expanded facilities is
expected to commence in 2025-26.
De-icing infrastructure
The Group increased its de-icing capability
with the construction of its de-icing
warehouse at Astana airport. This completed
in December 2024 and is an important
milestone given the challenging winter
climate in the Group’s home market. In
Almaty, the de-icing fluid mixing station was
upgraded with increased storage capacity and
reduced refilling speed by 50%. In 2024, four
new de-icing trucks were delivered to Almaty
and Astana, increasing the total number
operated by the Group to 14. The expansion of
de-icing facilities contributes to improved
operational capabilities and efficiency.
Ground Services subsidiary
The Group is in the process of establishing a
fully owned Ground Services subsidiary, Air
Astana Terminal Services, to ensure a
high-quality customer service and also
manage one of its key costs.
At the same time, this move will enable the
Group to ensure a high-quality customer
service while expanding operations and
potentially creating growth opportunities
providing services to other airlines at its
principal hubs at Almaty and Astana.
Fuel optimisation and savings
In line with its strategy to reduce costs and
optimise operations, the Group partnered
with StorkJet to introduce its Aircraft
Performance Monitoring software across its
fleet. The software uses airborne flight data
and artificial intelligence to improve fuel
planning, optimise descent and diagnose
airframe or engine-related problem. It is
expected to reduce fuel burn by 1% and
lower CO
2
emissions. In addition, the Group
re-implemented a Fuel Tankering programme
in April 2024 to minimise fuel costs and
further improve efficiency on its modern
fleet of aircraft. This achieved significant fuel
savings during the year.
Training and recruitment
As part of its commitment to high standards
of pilot training and performance, the Group is
extending its Flight Training Centre (FTC) in
Astana. The Group’s A320 Full-Flight Simulator
– one of the first in Central Asia – is currently at
full utilisation. The second Full Flight Simulator
was delivered in February 2025 and is on track
to be commissioned by the end of this year
increasing capacity, extending operational
efficiency and potentially generating revenue
from external pilot training.
In line with the Group’s strategy of fleet
simplification, all Embraer pilots have now
been converted to Airbus in preparation for
the final phase-out of the Embraer fleet. The
Group is in the final stages of becoming the
first airline in Central Asia and CIS to be
awarded a Multi-Pilot-Licence (MPL), which
will further contribute to the efficiency of
pilots across the Group. Furthermore, the
implementation of Jeppesen Pairing
Optimiser is currently in progress and
expected to go live in April 2025, which could
bring potential savings of 5-7%. All these
actions will contribute to improving the
efficiency of pilot utilisation.
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
89
We continue to train our own people, pilots,
crew and engineers. Since the ab-initio pilot
cadet programme started in 2008 we have a
record high – 30 cadets currently in training.
About half of the pilot force are graduates of
the ab-initio programme and 80 have been
promoted to captains. The new cabin
emergency evacuation training system and
real firefighting trainer simulators were also
commissioned during the year.
In addition to pilot training, the Group
implemented training programmes for cabin
crew, including a CEET and RFFT required for
mandatory ongoing training. The Group
further strengthened its flight crew induction
training and cabin crew training with
additional training on pre-flight security
checks. This reduces the number of crews
required.
The Group’s training programmes and
pathways for career progression makes it
at an attractive workplace for prospective
employees. The Group has established
partnerships to develop talent and attract
high-skilled employees from universities
and colleges including the Academy of Civil
Aviation, KIMEP University, De Montfort
University Kazakhstan, University of
International Business, L. N. Gumilev Eurasian
National University, Caspian University and
NARXOZ University. In addition, the Group
participates at university exhibitions and
forums, and Tech Orda online webinars.
Digital platforms are also used for
recruitment, hosting online resources and
career portals on its website and using social
media to reach a broader number of
candidates with active job postings on
LinkedIn. The Group’s recruitment team
is also increasingly deploying artificial
intelligence to tailor job descriptions to
attract the best and most suitable talent.
AIR ASTANA GROUP Integrated Annual Report 2024
90
Operating review
Ensuring excellence for our
passengers
The Group is dedicated to maintaining
the highest standards and providing
the best experience for its customers
on every Air Astana and FlyArystan
flight. This continuous improvement is
reflected in the upgrades made
throughout 2024 and has been once
again recognised by experts at the
industry’s most prestigious awards
ceremonies.
In 2024, the Group implemented multiple
strategic initiatives to enhance customer
experience, focusing on service quality,
operational efficiency, and innovation.
New lounge openings
In November 2024, Air Astana opened its
dedicated The Shanyraq business lounge in
the new terminal at Almaty International
Airport. This offers a world-class service to
the airline’s business class and frequent
flying customers. It follows the revamping of
The Shanyraq business lounge at Astana
Airport which resumed welcoming customers
in July.
Customer experience
The experience provided to the Group’s
customers is regularly reviewed, driven by
the CXG (Customer Experience Group) chaired
by the CEO. This is informed by feedback
from customers which was expanded in 2024
to include an onboard survey (expanded
from three to nine languages) and post-flight
survey automation (linked to the Passenger
Name Record and travel history). In addition,
the Group conducted benchmarking research
in key markets to ensure its service offerings
are aligned with international standards
while maintaining the unique Kazakh identity
that make Air Astana and FlyArystan special.
The most notable improvement in 2024 was
the launch of the upgraded website,
providing a more intuitive experience for
customers across booking, check-in and ticket
management. This will be followed by the
launch of the new app in the first half of
2025. The Nomad Club frequent flyer
programme was revamped with a spend-
based accrual and integrated with the new
website to offer a seamless experience.
The introduction of iJan self-service kiosks
has been transformational in making the
check-in process quicker and more efficient
for FlyArystan passengers. The kiosks, which
were originally introduced in 2022 as the first
in Central Asia, allow passengers to scan
their documents, check-in, choose a seat,
weigh their baggage and receive a baggage
tag. In 2024, these terminals were rolled out
to all airports in Kazakhstan with a total of 62
kiosks now in place. Building on this
technology, automated baggage self-check-in
facilities (BagJan) were also launched ahead
of the 2024 summer season. These facilities
allow passengers to bypass queues by
dropping off their own baggage and
independently completing pre-flight
procedures, making the process even faster
and more convenient.
Despite investing in automation,
management are aware of the vital role
played by operational staff supporting
passengers on the ground. Just as the Group
dynamically managed its fleet to allocate
capacity when demand was at its peak,
resources were also committed to increase
customer support during the busy summer
period. 65 non-operational employees were
mobilised to assist passengers at Almaty
International Airport during the summer,
ensuring smoother customer journeys during
a busy period for both airline brands.
Award-winning service
The Group’s focus on continuous
improvement was recognised by
international industry awards in 2024. Air
Astana was named the Best Airline in Central
Asia & CIS for the thirteenth year running by
Skytrax and received the Best Airline Staff
Service in Central Asia & CIS award for the
eighth time. Air Astana also received the
APEX award for Best Overall Airline award in
Central Asia, following its recognition with an
APEX Five Star award in the ‘Major Airlines’
category earlier in 2024.
FlyArystan won the Skytrax Best Low-Cost
Carrier in Central Asia & CIS award for the
second time and completed a Skytrax Audit
in November 2024, retaining its four-star LCC
status. Furthermore, Air Astana Group is now
a certified ACCA Approved Employer at
Platinum level.
In June, the Group was awarded the ‘Most
Innovative Education/Training Programme’
by the American Chamber of Commerce in
Kazakhstan. This recognised the Group’s
ab-initio pilot training programme, aviation
mechanics training programme and the
opening of the crew training centre in
Astana, equipped with modern simulators for
practising emergency rescue procedures. The
award reflects the Group’s commitment to
the principles of ESG, including the provision
of quality education, gender equality and the
creation of decent working conditions.
On behalf of all colleagues across the Group,
CEO Peter Foster accepted The Airline
Business award at the Airline Strategy
Awards 2024, providing special recognition
for his longstanding contribution to the
aviation industry and strong leadership over
an extended period. The Group’s CFO Ibrahim
Canliel was also awarded ‘The Best CFO’ at
the CFO Summit Kazakhstan 2024.
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
91
Financial review
A year of delivery despite
industry headwinds
In 2024, we delivered on our guidance set out at IPO
with a year of strong growth. This was achieved despite
industry-wide cost inflation, revenue pressures and
OEM restrictions. Our dual-brand model and unique
geographical location allowed us to dynamically
reallocate capacity to higher margin routes, driving
up adjusted EBITDAR* by 16.1%, well ahead of ASK
growth of 9.2%.
Our focus on profitability ensured a progressive
improvement in the RASK-CASK index differential
throughout the year, turning positive in Q4. This
successfully resulted in unit revenue growth almost
fully offsetting unit cost inflation for the year.
Our balance sheet remains strong with an improved
cash-to-sales ratio and low leverage. This gives us the
confidence to propose ordinary dividends ahead of
schedule, alongside a special dividend and an
enhanced dividend policy for the future.
The opportunity ahead of us is compelling.
We are confident of delivering growth in
2025 in line with our medium-term guidance.
Ibrahim Canliel
CFO of Air Astana JSC
AIR ASTANA GROUP Integrated Annual Report 2024
92
fulfilling our promises
The Group delivered a strong set of results in 2024, with revenue
and EBITDAR growth in line with our guidance. This was a result
of proactive actions taken early in the year to manage industry-
wide cost and revenue pressures as well as capacity constraints.
On the back of 9.2% ASK growth, total revenue and other income*
increased 12.4% to USD 1,308 million (2023: USD 1,164 million),
underpinned by a 10.0% increase in passenger revenue* to USD 1,246
million. Adjusted EBITDAR* grew 16.1% to USD 338.6 million (2023: USD
291.6 million). The Group’s adjusted EBITDAR margin* remains one of
the highest in the industry at 25.9%, an improvement of 0.8 pp on 2023.
Operating profit* rose by 14.9% to USD 145.7 million (2023: USD 126.8
million), with net profit* up 6.0% to USD 65.2 million (2023: USD 61.5
million in 2023).
Revenue
The Group’s successful execution of its fleet expansion strategy
resulted in a 9.2% increase in Group ASK during 2024 to 19.3 billion,
with domestic ASK growing by 12.9% and international by 6.4%.
The Group’s dual-brand model provides flexibility in allocating
resources to higher RASK routes. This, combined with its unique
geographical location, allowed the Group to continue to balance
passenger growth with a relentless focus on operational cost
efficiency, growing largely in higher margin international routes such
as the nearby megamarkets in Asia and the Gulf.
Group RASK* improved progressively throughout the year, growing by
6.6% in Q4 2024 and by 2.6% across 2024, driven by proactive
capacity management across both airline brands. RPK increased 10.1%
to 16.1 billion (FY 2023: 14.6 billion).
Dynamically allocating capacity
to higher margin routes
RPK (bn)
Costs
The Group is constantly reviewing initiatives and new technologies to
deliver operational cost efficiencies, support margin growth and keep
unit costs at a very competitive industry level.
Total operating costs* increased by 12.1% in 2024 to USD 1,163 million
(2023: USD 1,037 million) or 2.7% per ASK. This was driven by
industry-wide cost inflation, higher airport rates, the Group’s continued
investment into customer experience, operating staff remuneration
and higher aircraft depreciation expenses from the fleet expansion,
as well as planned lower utilisation during the off-peaks to maximise
the margin during the peak. This was partially offset by the lower
than ASK growth of engineering and maintenance costs.
Cost drivers
CASK (UScents)
However, the Group’s highly effective cost management programme
ensured only a moderate increase in full-year CASK* of 2.7%, which
was broadly offset by the growth in RASK by 2.6%. The RASK-CASK
index differential improved progressively over the quarters from
negative 1.9 percentage points in Q1 2024 to positive 4.0 percentage
points in Q4, resulting in a broadly neutral RASK-CASK differential for
the year, ahead of guidance.
RASK-CASK growth differential
Percentage points
Following the re-implementation of the Fuel Tankering programme
earlier in 2024, the Company achieved additional savings of USD 4
million. Approximately 30% of the Group’s fuel is sourced
internationally, which the Company hedges using call options. In
addition, a Fuel Savings Programme will be implemented during the
first half of 2025 to reduce fuel burn and emission levels.
1
Includes Germany, Greece, Montenegro, Netherlands and UK.
2
Includes Maldives and Sri Lanka.
3
Includes Armenia, Azerbaijan, Georgia, Kyrgyzstan, Tajikistan and Uzbekistan.
4
Includes Egypt, Israel, Qatar, Saudi Arabia and UAE.
5
Includes Singapore, Thailand and Vietnam.
2023 Fuel Handling,
landing
fees,
navigation,
passenger
service
D&A E&M Employee
and crew
costs
Other 2024
5.86 0.001
0.068
0.063
-0.002
0.031
-0.006
6.02
2023 Europe
1
Central
Asia and
Caucasus
2
Turkey South
Korea
India
Region
3
Middle
East
4
China
and
Far East
5
Domestic 2024
14.6
-14% -9%
-3%
+8%
+50%
+28%
+33%
+12%
+10%
16.1
-1.9
-1.1 -1.0
+4.0
Q1 2024 Q2 2024 Q3 2024 Q4 2024
Financial review continued
* Excluding non-recurring items: Net IPO related expenses of USD 1.8 million in 2023/USD 12.9
million in 2024. Revenue from the extraordinary market event impacted by partial
mobilisation in Russia of USD 11.0 million in 2023. RASK adjustment of USD 4.2 million in 2024.
Donations of USD 2.7 million in connection with the flood situation in Kazakhstan in 2024.
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
93
Fuel hedging and currency
In line with the Group’s policy to hedge fuel
price risk, it hedged all volumes in 2024 using
call options enabling the Group to hedge the
upside risk without an associated downside
risk. At the time of writing the report, the
Group is fully hedged against the anticipated
increase in international fuel prices for the
first three quarters of 2025 with options
between USD 75 and 85 per barrel.
Balance sheet and leverage
ratio
The Group maintains a robust balance sheet
and liquidity position. As at 31 December
2024, the Group’s cash position was USD
488.7 million, an increase of 78.4% or USD
214.7 million on the prior year (2023: USD
274.0 million), with a cash-to-sales ratio of
37.3% (2023: 23.3%) before available
facilities. This includes the USD 120 million
proceeds from the IPO.
Group Net Debt/Adjusted EBITDAR reduced
from 1.5x in 2023 to 1.2x in 2024, driven by
organic cash generation and IPO proceeds.
During 2024 early full repayments were
made for five Airbus aircraft under finance
lease. Two of these repayments were made
at the end of the third quarter and the
remaining three were repaid in Q4 2024.
Dividends
The Board of Directors has proposed to the
Annual General Meeting of Shareholders
(AGM) an ordinary dividend of KZT 17.7 per
one common share (KZT 70.9 per GDR – of
four shares), a total dividend of KZT 6.3
billion, earlier than the medium-term
guidance set out at IPO.
Additionally, in light of the Group’s robust
financial results for 2024 and strong balance
sheet, the Board of Directors has
recommended a special dividend of KZT 36.0
per one common share (KZT 143.9 per GDR),
a total dividend of KZT 12.8 billion.
The total proposed dividend (ordinary and
special dividend) amounts to KZT 53.7 per
one common share and KZT 214.8 per GDR.
This is subject to AGM approval on 29 May
2025 and payable in mid-2025.
The Board of Directors has approved the new
enhanced dividend policy stipulating a
dividend of 30 to 50% of annual net income
2
,
ahead of previous guidance of up to 20%.
Air Astana and FlyArystan are among the lowest cost and highest margin airlines in the industry
Cost per ASK
1
in 2024
US$ cents
EBITDAR margin
1
in 2024
%
Japan
Airlines
Lufthansa Air France
KLM Group
British
Airways
EasyJet IAG Emirates Turkish
Airlines
Singapore
Airlines
Air Astana Aer Lingus IndiGo Wizz RyanAir FlyArystan
12.91
12.09
10.34
9.61
9.08 9.03
8.35 8.28
7.65
6.94* 6.78
5.75
5.45
5.09 5.03*
Emirates FlyArystan Air Astana IndiGo RyanAir EasyJet IAG Turkish
Airlines
Singapore
Airlines
Wizz Aer Lingus Japan
Airlines
British
Airways
Air France
KLM Group
Lufthansa
31%
28%*
25%*
23% 23%
23%
21% 21%
21%
19%
18% 18%
16%
13%
10%
Source: The Airline Analyst by Airfinance Journal, official website of the company. Air Astana and FlyArystan are shown on a standalone basis, excluding intergroup lease revenue and EME,
IPO expenses, donation (Data for January 2024 – December 2024). Air France, Finnair, IAG, Lufthansa, Turkish Airlines updated for January 2024 – September 2024. Emirates, Ryanair updated
for April 2023 – March 2024. EasyJet, Indigo, Japan Airlines, KLM, Singapore Airlines, Wizz air updated for April 2024 – September 2024. Aer Lingus (data for January – December 2023), British
Airways (data for January – June 2024).
1
Excluding Non-Recurring Items.
2
Subject to all conditions described in the dividend policy.
Financial review continued
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
94
Buyback programme
On 30 April 2024, the Company commenced
a buyback programme to purchase ordinary
shares and global depositary receipts in order
to meet the Company’s obligations arising
from its employee incentive programmes.
In the first part of the programme, which
concluded on 31 December 2024, the
Company purchased in total 4,638,555 shares
(3,263,423 shares and 343,783 GDRs
(representing 1,375,132 shares)) for a total
consideration of USD 8.2 million. First vesting
of shares and GDRs to employees took place
on 17 February 2025.
On 13 March 2025, the Board approved the next
phase of the employee incentive programme
for a total amount of up to USD 5 million.
Maintaining medium-term
guidance
The Group expects to deliver growth in 2025,
in line with its medium-term guidance. This
is underpinned by continued passenger
growth on existing routes in nearby
megamarkets including China, India,
the Gulf and Saudi Arabia. Furthermore, the
Group remains ideally positioned to benefit
from increased air travel in its underserved
extended-home market, the world’s fastest-
growing aviation region according to IATA.
Management will continue to proactively
manage the Group’s yield and operate a
low-cost base, as successfully executed in
2024, to maintain balance between RASK and
CASK growth. Capacity will continue to be
realigned to ensure highest margin delivery
and to mitigate inflationary cost pressures,
while retaining a load factor broadly
consistent with 2024.
Despite the ongoing OEM and supply-chain
challenges, the Group expects to expand the
total fleet to 63 aircraft by the end of 2025
and extends guidance to 84 aircraft by the
end of 2029.
As a result, the Group remains on track to
meet its medium-term expectation of
mid-to-high 20s EBITDAR margin with
liquidity ratio above 25% and leverage below
3.0x Net Debt/EBITDAR.
Ibrahim Canliel
CFO of Air Astana JSC
Financial review continued
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
95
fulfilling our promises
96
AIR ASTANA Integrated Annual Report 2024
Governance
Introduction to Corporate Governance 98
Corporate governance framework 100
Board leadership and Company purpose 101
Strategic Planning Committee report 108
ESG Committee report 109
Division of responsibilities 110
Board of Directors 112
Senior management team 114
Composition, succession and evaluation 116
Nomination and Remuneration Committee report 118
Remuneration report 120
Treasury Committee report 123
Audit Committee report 124
Responsibility statement 127
97
AIR ASTANA Integrated Annual Report 2024
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
I believe the Group’s ability to achieve
long-term success depends on an
absolute adherence to international
best practice for governance, and I see
this as my major remit as Chairman of
the Board. This adherence is
underpinned by establishing a culture
throughout the business based on a
strong set of corporate values, and a
business strategy that aims for growth
by continually improving our efficiency
and excellence at all levels. To support
these aspirations, we have our own
corporate governance code, developed
in accordance with the UK Corporate
Governance Code, Astana International
Financial Centre Market Rules and the
Air Astana JSC Charter.
As provided for in our Prospectus, published
prior to the IPO in February 2024, the Non-
Executive Director representative of
shareholder BAE Systems, Myles Westcott,
stepped down from the Board of Directors on
30 May 2024, to be replaced effective from 31
May 2024, by Diyas Assanov, an Independent
Non-Executive Director. This brought the Board
in line with the provisions of the UK Corporate
Governance Code, which recommends that at
least half the Board members should be
Independent Non-Executive Directors. The
Board now has five Independent and four
Non-independent Directors. In overseeing the
Company, this Board is backed by an
outstanding senior management team that
holds an average of 16 years’ tenure with the
Group in addition to longstanding and solid
experience in our sector.
In February 2024, Air Astana Group became the first
company, both domestically and internationally, to
achieve a simultaneous listing on three stock exchanges
- the London Stock Exchange, Kazakhstan Stock
Exchange and Astana International Exchange. Naturally,
this will enhance the profile of the business and increase
the international attention it receives, whether from
investors, analysts or media. Therefore our focus on
integrity and compliance throughout every aspect of
our corporate governance remains a major priority.
Nurlan Zhakupov
Chairman of the Board of Directors
Introduction to corporate governance
Strong governance is the
highest priority
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
98
Air Astana’s Corporate Governance Code was
developed in accordance with Kazakhstan
law, the rules of the Astana International
Financial Centre Market and the Company’s
own Charter. It is also aligns with best
international practice, including the principles
of the OECD and elements of the 2018 UK
Corporate Governance Code.
It was approved by the Company’s
shareholders in February 2024. The Company
is required to comply with the Code – or,
where the provisions of the Code have not
been complied with, to provide appropriate
explanations.
Throughout 2024, the Company applied all the
principles set out in the Code and has complied
with almost all of its provisions, where these
have not been complied with, you can find
appropriate explanations in this report.
The AIX corporate governance
principles
AIX has Corporate Governance Principles and
Corporate Governance Best Practice Standards
in place for listed companies. Air Astana’s
Corporate Governance Code is largely
consistent with these principles and standards.
Throughout 2024, the Group was in full
compliance with the Corporate Governance
Principles, whereas some of standards were
not adopted by the Group. You can find
explanations as to why certain standards were
not adopted in this report.
Introduction to corporate governance continued
Statement of compliance with relevant
corporategovernance codes
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
99
The Group believes good governance
facilitates responsible, accountable
and efficient management that can
achieve stakeholder value over the
long term. Our corporate governance
framework is based on the principles
of integrity, fairness, equality,
transparency, accountability and
commitment to values.
We have developed a corporate governance
framework that ensures effective board
governance procedures, strong internal
control systems, accountability and
transparency. We have implemented
various codes and policies to ensure best
corporate governance practices at all levels.
By upholding these practices, we aim to
create an efficient and sustainable
environment that benefits its stakeholders
in the long run. Through ongoing
refinement of its governance practices,
the Group strives to ensure its continued
growth and financial stability.
The roles and competencies of the Group’s
management and executive bodies are
clearly set out in the Charter, Corporate
Governance Code and internal documents
of the Company available at ir.airastana.com
Corporate Governance report
Corporate Governance Framework
* In January 2025, to optimise the activities of the Board of Directors, we reviewed the structure of the Committees
and disbanded the Treasury Committee, with the transfer of its functions to the Audit Committee.
GENERAL
SHAREHOLDERS’
MEETING
BOARD OF
DIRECTORS
CEO
AUDIT
COMMITTEE
NOMINATION AND
REMUNERATION
COMMITTEE
STRATEGIC
PLANNING
COMMITTEE
TREA SURY
COMMITTEE*
ESG
COMMITTEE
INTERNAL
AUDIT
SERVICE
COMPLIANCE
SERVICE
CORPORATE
SECRETARY
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
100
The role of the Board
The principles of the Air Astana Corporate
Governance Code form the basis on which the
Company operates – as a safe, sustainable and
successful business, to generate long-term
value for its shareholders. Responsibility for
upholding these principles, allied with a
watching brief over all risks and internal
controls, lies with the Board of Directors.
Day-to-day management of the business is
delegated to the CEO, whose activity is
supported by the Executive team.
The Company’s Board of Directors is guided by
the Company’s Charter, Corporate Governance
Code and follows an annual activity plan and
meeting schedule. The Board of Directors can
also review matters beyond its activity plan, if
necessary.
Conflicts of interest
Air Astana’s Code of Conduct urges employees
to report any conflict of interest according to
procedures established by internal documents.
All potential or actual conflicts of interest are
carefully analysed and measures are developed
to minimise the risks arising from them. A
policy for preventing and resolving conflicts of
interest is also in place. The document outlines
the types and causes of conflicts of interest,
and prevention procedures, as well as
regulating conflict settlement actions of the
Company’s bodies.
There are no potential conflicts of interest
between the duties of any Director or senior
management and the Company in their private
interests or other duties, except for those set
out below. Neither are there any arrangements
or understandings with the shareholders,
customers, suppliers or others that influence
the selection of any Director or senior
management.
Each of the members of the Board of Directors
has a statutory duty to perform his or her
duties in good faith, act in the best interests of
the Company and shareholders, and maintain
confidentiality of all information on the
Company’s activities, including for three years
from ceasing to be a member. Members are
also required to monitor and, to the extent
possible, eliminate potential conflicts of interest,
including for the unlawful use of the Company’s
assets and their misuse in transactions with
related parties.
In this connection, the members of the Board
of Directors are obliged to disclose information
on persons they are affiliated with. Under the
JSC Law, transactions with related parties
require the approval of the Board or
shareholders where the relevant member, if
related or affiliated to the related counterpart to
the transaction, would be prevented from
voting in such decision-making process.
There are no family relationships between any
of the Directors or Senior Managers.
Our purpose, values and culture
For over 20 years, Air Astana has been key to
opening up Kazakhstan to the world and vice
versa, through its flight connections with its
major neighbours in Europe. Launching
FlyArystan in 2019 to promote flights across
the world’s largest landlocked country has
not only increased mobility by significantly
reducing travelling times, but created closer
links between communities.
This has, in turn, bolstered economic growth
by enabling new employment opportunities
through emerging small businesses, and
infrastructure development through the
opening and expansion of local airports. With
a strong position in Kazakhstan’s domestic
market and in the neighbouring Central Asia
and Caucasus regions, the Group is now
looking to expand international flights within
megamarkets.
We believe our focus on excellence will be
the major influence in positioning ourselves
as one of the finest airline groups in the
world. It is one of the pillars on which we
have also built our status as a major
economic and social enabler within
Kazakhstan. This is also true for our
employees, for whom we have created a
positive work environment through our
corporate values and a culture of recognition.
Our business ethos is embedded throughout,
with our commitment to our HEART and
CHARM values, which rewards and provides
equal opportunities at every level. Leading by
example, our senior management promote
our strategy, values and beliefs across the
business to ensure our employees are fully
engaged with, and positive about, the
Group’s vision for the future.
Corporate Governance report
Board leadership and
Company purpose
OUR CULTURE
Our corporate culture reflects our core values and ambitions, as well as our commitment to all
our stakeholders. Excellence lies at the centre of all we do and, by embedding it into our culture,
we build an engaged and satisfied workforce that is fully invested in our core values.
OUR PURPOSE
Connecting Kazakhstan
and the rest of Eurasia
with true Kazakh
hospitality
OUR STRATEGY OUR VALUES
Air Astana’s HEART values:
Hospitable, Efficient, Active,
Reliable, Trustworthy
FlyArystan’s CHARM values:
Creative, Happy, Agile,
Reliable, Modern
Growth
Efficiency
Excellence
AIR ASTANA GROUP Integrated Annual Report 2024
101
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
DIVISIONAL HEADS
OF BUSINESS AREAS
Develop and implement
initiatives.
To fully understand their perceptions, we ask
their opinions and gauge their responses
through a number of different channels,
including employee engagement and pulse
surveys, measures of health, safety and
wellbeing, and diversity indicators. Air Astana
was, for example, the first business in
Kazakhstan to introduce an internal pension
programme, which was well received, as
well as introduction of long-term incentive
programmes and these are the factors in
retaining talents. The Board plays an
important role in monitoring the results of
engagement surveys and regular compliance
reviews as part of its remit.
How the Board considers
stakeholders’ interests
The direction, management, performance and
sustainability of the business all contribute to
the Group realising its long-term success. The
responsibility for overseeing and setting the
Group’s strategy and objectives falls within the
remit of the Board. It also needs to understand
and take account of the interests of its
stakeholders in all Boardroom decision-
making to factor in the potential impacts on
each group.
Relations with shareholders
Achieving our financial obligations to our
shareholders is key to fostering good
relationships with them. Major shareholder
representatives sit on the Board of Directors
and are kept up to date with the Company’s
affairs in order to make a meaningful
contribution to all strategic decision-making.
The Chair of the Board of Directors has effective
channels in place to ensure that any shareholder
concerns or issues are properly addressed.
Share ownership
The Air Astana Group floated on three stock
exchanges in February 2024. Achieving this
also required the restructuring of the overall
share ownership.
As of early 2024, Air Astana Group was 51%
owned by the National Welfare Fund
Samruk-Kazyna JSC, which was established to
improve the competitiveness and stability of
the national economy and to mitigate
external risks to domestic economic growth.
BAE Systems plc is a British organisation
involved in the development, delivery and
support of advanced defence, security and
aerospace systems on land, at sea, in the air
and in space. Its subsidiary, BAE Systems
(Kazakhstan) Limited, owned 49% of Air
Astana.
To facilitate the IPO offering in early 2024, the
National Welfare Fund Samruk-Kazyna JSC
and BAE Systems (Kazakhstan) Limited
decreased their shares from 51% and 49% to
41% and 17%, respectively, with the
remaining shares available for trading on the
open market.
Major shareholders:
As at 31 December 2024, the Company had
been notified under Rule 5 of the Disclosure
and Transparency Rules of the Financial
Conduct Authority of the following interests of
3% or more in its total voting rights: Samruk-
Kazyna National Welfare Fund JSC owns 41%
of the shares, BAE Systems (Kazakhstan)
Limited owns 16,95% of the shares of Air
Astana, Unified Accumulative Pension Fund JSC
owns 6.5% of the shares and other
shareholders own 35,55% of the shares.
Current and future regulatory filings by
shareholders will be available on the Group’s
website at ir.airastana.com
Dialogue with shareholders
The Company engages with shareholders
to engender dialogue and feedback. The
Independent Directors on the Board are
asked to ensure all stakeholder interests
are taken into account in decision-making,
having ascertained any concerns or queries
independent of the shareholders and
Executive team.
Constructive use of the General Meeting
of Shareholders
The General Meeting of Shareholders is the
highest governing body of the Company, and
has the authority to make decisions on major
issues concerning the Company’s activities.
Its functions and activities are defined by the
legislation of the Republic of Kazakhstan, the
provisions of the Charter and internal
documents.
The General Meeting of Shareholders can be
convened by the Board of Directors, which
forms the agenda for consideration by the
General Meeting of Shareholders, subject
to approval by the General Meeting of
Shareholders. If the General Meeting of
Shareholders is convened upon request of
a Major Shareholder, the Board of Directors
cannot of its own initiative introduce any
changes to the agenda or propose a
procedure for the conduct of an Extraordinary
General Meeting of Shareholders. However,
the Board of Directors may propose inclusion
of additional items onto the agenda at its
own discretion, subject to further approval
of the General Meeting of Shareholders.
The Annual General Meeting of Shareholders
is held once a year, within five months of the
end of the financial year, and considers the
annual financial statements of the Company,
the audit report on the annual financial
statements, proposals from the Board of
Directors concerning the procedure for
distribution of the consolidated net income of
the Company for the past financial year, and
the amount of the annual and/or special
dividend per one common Share, the
information on complaints of Shareholders
about acts of the Company and its officials,
and the results of handling them; and other
documents at the discretion of the initiator of
the Annual General Meeting of Shareholders.
Corporate Governance report Board leadership and Company purpose continued
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
102
Board leadership and Company purpose continued
In 2024, Air Astana held five General
Meetings of Shareholders, which addressed
the following matters:
1. On 26 January 2024, by the resolution of
the Extraordinary General Meeting of
Shareholders, the terms of the payment
of remuneration (annual bonus) to the
President of the Company for 2024, and
the maximum amount of remuneration
(annual bonus) payable to the President
of the Company were approved.
2. On 08 February 2024, the Extraordinary
General Meeting of Shareholders
approved the restated Charter of the
Company and the restated Corporate
Governance Code of the Company;
decided on the terms of the issue of
derivative securities of the Company
(global depositary receipts, the underlying
asset of which are stocks (shares) of the
Company); approved the procedure,
deadlines and total number of the
securities of the Company to be placed
(disposed) without the pre-emptive right
of purchase in the course of the initial
public offering of the stocks (shares) of
the Company and global depositary
receipts, the underlying asset of which
are these stocks (shares), on stock
exchanges operating in the territory of
the Republic of Kazakhstan and foreign
states; decided on the placement of
stocks (shares) of the Company and the
price of their placement within the limits
of the number of authorised stocks
(shares) of the Company; approved the
procedure, deadlines and total number of
the securities of the Company to be sold
without applying the pre-emptive right to
purchase within the framework of the
payment of the incentives to the
employees of the Company; approved the
decisions of the Board of Directors of the
Company on the Company’s conclusion of
interested party transactions; resolved to
take one (1) Airbus A321ceo type aircraft
and one (1) Airbus A320neo type aircraft
into operating lease.
3. At the meeting of the Extraordinary
General Meeting of Shareholders on 09
February 2024, resolutions were passed
regarding the following matters: election
of the Board of Directors for a period of
two years; election of Nurlan Zhakupov as
the Chairman of the Board of Directors of
the Company; approval of the amount
and terms of remuneration and
compensation to the independent
directors of the Company; approval of the
restated methodology for determining the
value of shares for the purposes of their
repurchase by the Company; approval of
the Grades of Employees of the Company
eligible for IPO Bonus, Long Term
Incentive Plan (LTI) and Employee Share
Ownership Plan (ESOP) in accordance with
the Rules of Employee Incentive Plan of
the Company.
4. On 30 May 2024, the Annual General
Shareholders’ Meeting considered and
made decision on the following matters:
elected the counting commission of the
Company; approved the consolidated and
separate annual financial statements of
the Company for the year ended 31
December 2023; decided to pay no
dividends on the Company’s shares for
the year 2023; considering the resignation
of Myles Westcott, the member of the
Board of Directors of the Company,
effective from 30 May 2024, elected
Assanov Diyas as the member of the
Board of Directors - Independent Director
of the Company effective from 31 May
2024; established the amount and terms
of remuneration and compensation to the
member of the Board of Directors -
Independent Director Assanov Diyas;
considered the information on the
shareholders’ appeals against the actions
of the Company and its officers, as well as
the information about the amount and
composition of the remuneration for the
members of the Board of Directors and
Executive Body of the Company.
5. On 15 November 2024, the Extraordinary
General Meeting was held to consider and
decide on the issue of amendment of the
major transaction earlier approved by the
decision of the General Meeting of
Shareholders of the Company and the
Company’s entry into a major transaction
(series of interrelated transactions), which
is an interested party transaction by
entering into an Assignment Agreement
under the Fleet Management Programme
of the Airbus A320neo family for the
maintenance of PW1100G type engines
between International Aero Engines, LLC,
FlyArystan JSC and Air Astana JSC.
Employee engagement
We are the leading employer in Kazakhstan,
employing 6,546 people across all our
operations. We recognise that the success of
our business relies on the dedication and skill
of our employees.
The Air Astana Group continually engages
with employees through various initiatives,
including employee pulse surveys, regular
communications from the Chief Executive
Officer and conferences held offline and
streamed via YouTube. To measure labour
relations, the Air Astana Group works with
Gallup to conduct Employee Social Stability
Index surveys bi-annually.
The employees of the Company form various
professional unions for representing their
interests on various matters: one union
represents the Air Astana Group’s cabin crew,
engineers and other employees, while two
other unions represent pilots. The Air Astana
Group recognises the importance of
engaging with the labour unions and other
representative bodies across its operations to
promote the success of the business. The Air
Astana Group executes separate standard
employment agreements with its pilots,
cabin crew members and other personnel.
Corporate Governance report Board leadership and Company purpose continued
AIR ASTANA GROUP Integrated Annual Report 2024
103
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
The Air Astana Group believes that, by
pursuing its corporate HEART values for Air
Astana and CHARM values for FlyArystan, it
has created a positive work environment for
its employees. It promotes a culture of
recognition, with a focus on training and
development, and provides equal
opportunities to ensure it retains its
employees and attracts new talent.
The Board of Directors, through its ESG
Committee, regularly considers the reports of
the management of the Company on the
results of Employee Social Stability Index
surveys as well as consideration of any appeals
coming from the unions or employees, if any.
In September 2024, all members of the Board
of Directors visited the site where the
Company performed the 12-year C-check. Air
Astana became the first Kazakh carrier to
carry out this significant maintenance event,
which was conducted on an Air Astana
Airbus A321 aircraft. The visit provided an
opportunity for Board members to engage
directly with key personnel, gain a deeper
understanding of the operational processes,
and demonstrate their support for the
airline’s technical capabilities. This
involvement also allowed the Board to make
informed decisions about the airline’s future
direction. By participating in such critical
maintenance milestones, the Board
reinforced Air Astana’s commitment to safety,
quality and continued growth within
Kazakhstan’s aviation industry.
Further, the Board of Directors is considering
the recommendations of the UK Corporate
Governance Code for workforce engagement,
and will report in due course on the method
it has chosen.
Board activities in 2024
In 2024, the Board of Directors held 20 meetings, including 11 meetings in person. The attendance at meetings by Board members was 100%. Among
the regular matters under consideration, the Board’s major focus in 2024 was on: the preparations for the IPO of the Group which took place in February
2024 and post IPO life, as well as the full separation and start of operations of the FlyArystan low-cost airline wholly owned by Air Astana JSC.
Areas of focus Topics discussed
Strategy
►
Deciding on an announcement of the Company’s intention to publish a Registration Document and expected intention to float
the securities of the Company on the London Stock Exchange, Astana International Exchange and Kazakhstan Stock Exchange
JSC
►
Deciding on an announcement by the Company confirming its intention to float the securities of the Company on the London
Stock Exchange, Astana International Exchange and Kazakhstan Stock Exchange JSC
►
Deciding on the price range for the planned initial public offering (IPO) and its publication, and on publication of the preliminary
prospectus in the Republic of Kazakhstan for the purposes of a planned retail offering
►
Deciding on the placement (sale) of the Company shares without applying the pre-emptive right of purchase in the course of
the IPO, and global depositary receipts, the underlying asset of which are these shares, on stock exchanges operating in the
territory of the Republic of Kazakhstan and a foreign state
►
Approval of the Development Plan (Annual Budget) of the Company for 2025
►
Approval of the Development Plan (Business Plan) of the Company for 2025-2029
►
Discussion of the issue of creating a new legal entity for ground handling service with 100% ownership of the Company
Risk management
►
Approval of the restated Risk Management Policy of the Company
►
Approval of the restated policy on organising insurance coverage for the Company
►
Approval of the risk appetite of the Company
►
Approval of the risk capacity of the Company
►
Quarterly approval of the updated Risk Map and Risk Register of the Company
►
Quarterly consideration of the report on realised risks of the Company
►
Consideration of the operational safety review of the Company at each in-person meeting
Corporate Governance report Board leadership and Company purpose continued
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
104
Areas of focus Topics discussed
Operations and
finance
►
Approval of the decision of the Chief Executive Officer (CEO) on the Company opening a personal account in the nominee holder
system of Joint Stock Company Subsidiary of Halyk Bank of Kazakhstan, Halyk Finance (Kazakhstan)
►
Approval of the Special procurement procedure of the Company and organisations with fifty or more percent of voting shares
(participatory interests) directly or indirectly owned by the Company under the right of ownership or trust management in a
new edition
►
Deciding on the Company entering into interested-party transactions
►
Considering the proposal of the CEO on the operating lease of one Airbus A321ceo type aircraft
►
Considering the proposal of the CEO on the extension of the operating lease of one Airbus A320neo type aircraft
►
Considering the proposal of the CEO for the purchase of one GEnx-1B74/75 type spare engine for Boeing 787-9 type aircraft
►
Deciding on the increase of the Company’s obligations by an amount equal to 10 % or more of its own capital
►
Deciding on repurchase by the Company in the secondary market of the Company’s placed shares and the global depositary
receipts, the underlying assets of which are these shares
►
Considering the report on the preliminary results of financial and operational activity of the Company for 12 months of 2023
►
Considering the report on the results of financial and operational activity of the Company at each in-person meeting
►
Considering the quarterly cash forecast updates of the Company
►
Considering the quarterly treasury report of the Company on placed deposits and bank exposure
►
Banks overview for 2024
►
Opening bank accounts in JSC Aktiv Bank (Tajikistan) and O! Bank (Kyrgyzstan)
►
Change of the booking centre for the Company’s short-term deposits from Société Générale London Branch to Société Générale
Paris
►
Approval of the Procurement Standard of Air Astana Group
►
Approval of the Air Astana Group Procurement Process Manual
►
Preliminary approval of the annual consolidated financial statements of the Company for 2023
►
Preliminary approval of the audited annual separate financial statements of the Company for 2023
►
Proposals on the procedure for distribution of the net income of the Company for 2023 and the amount of the 2023 annual
dividend per one common share
►
Deciding on the formation of the Branch Office of Air Astana JSC in Seoul, the Republic of Korea
►
Deciding on the closure of representative offices of the Company in Almaty and Astana
►
Approval of the restated Cash Management, Bank Risk & Treasury Reporting Policy of the Company
►
Approval of the restated Accounting Policy of the Company
►
Amending the transaction previously approved by the Board of Directors in connection with the extension of the tenor of
secured revolving credit facilities in Halyk Bank of Kazakhstan JSC
►
Amending the major transaction previously approved by the Board of Directors in connection with entering by the Company
into an Assignment, Assumption and Amendment Agreement for one Airbus A321neo LR type aircraft
►
Amending the transaction previously approved by the Board of Directors in connection with entering by the Company into the
Co-lessee agreements
►
Amending the transaction previously approved by the Board of Directors in connection with the extension of the operating
lease of one Airbus A321neo type aircraft
Corporate Governance report Board leadership and Company purpose continued
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
105
Corporate Governance report Board leadership and Company purpose continued
Areas of focus Topics discussed
Governance, audit
and compliance
►
Preliminary approval of the restated Company Corporate Governance Code
►
Approval of the Company’s international prospectus
►
Approval of Company documents related to prevention of misuse of inside information:
3 Rules on Internal Control over Management and Use of Insider Information of Air Astana JSC
3 Securities Dealing Procedures Manual of Air Astana JSC
3 Securities Dealing Code of Air Astana JSC
3 Group-Wide Dealing Policy of Air Astana JSC
3 Disclosure Policy of Air Astana JSC
►
Considering the results of the independent limited assurance of the selected information disclosed in the Company’s Integrated
Annual Report
►
Approval of the restated Regulations of the Committees of the Board of Directors of the Company
►
Consideration of issues of the Internal Audit Service of the Company
3 Performance evaluation of the IAS for 2023
3 Report on the activities of the IAS
3 Approval of the amended Annual Audit Plan of the IAS for 2024
3 Approval of the updated staff schedule of the IAS
3 Approval of the Key Performance Indicators of the Internal Audit Service for 2025
3 Approval of the Annual Audit Plan of the Internal Audit Service for 2025
3 Approval of the budget of the Internal Audit Service for 2025
3 Approval of the restated Regulations of the Internal Audit Service
3 Approval of the updated Assurance Map
3 Approval of the amended Internal Audit Manual
►
Considering issues related to Company compliance
3 Annual Compliance Report for the 2023
3 Approval of the Risk-oriented annual Compliance plan for 2024
3 Report on internal analysis of corruption risks
3 Information on reports received via the Company’s whistleblowing hotline and internal investigations
3 Report on conflicts of interest of the Company’s officials and employees
3 Approval of the amended Policy for Prevention and Resolution of Conflicts of Interest of the Company
3 Reports of the Compliance Service
3 Approval of the restated Sanctions Policy of the Company
►
Determining the fee to be paid for the additional services of the external auditor performing the audit of the financial
statements of the Company for the year ended 31 December 2023
►
Approving the annual report on the performance of the Board of Directors of the Company and the Committees of the Board of
Directors of the Company for 2023
►
Approving of the integrated Annual Report of the Company for 2023
►
Deciding on convening the Annual and Extraordinary General Meetings of Shareholders of the Company and formation of the
agenda
►
Submitting matters to be resolved by the Annual Extraordinary General Meetings of Shareholders of the Company for
consideration and resolution by the General Meeting of Shareholders of the Company
►
Considering the quarterly Investor Relations updates
►
Approving the amended Procedure of the Company for the selection of the audit organisation
►
Approving the Regulations of the Compliance Service of the Company
►
Considering of issues related to Company sustainability
►
Considering of the results of the joint study with EBRD and KazMunayGas on potential of production and consumption of SAF in
Kazakhstan
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
106
Corporate Governance report Board leadership and Company purpose continued
Areas of focus Topics discussed
People
►
Considering the issues related to nomination of the Company’s employees and officials
3 Deciding on the re-election of the members of the Committees of the Board of Directors of the Company
3 Appointing the employees of the Internal Audit Service of the Company
3 Considering the candidate for the position of an Independent Director of the Company
3 Termination of authorities of the employee of the Internal Audit Service of the Company
3 Termination of the authorities of the Senior Compliance and Sustainability Officer of the Company
3 Appointment of the Head of the Compliance Service of the Company
3 Confirming the authorities of the CEO in view of the change of the title of the sole Executive Body of the Company
►
Considering the issues related to remuneration of the Company’s employees/officials
3 Approving the list of employees eligible for grant of the Employee Share Ownership Plan (ESOP), IPO bonus and Long-Term
Incentive (LTI).Determining the amount of the remuneration and vesting of the first tranche of the IPO bonus to the eligible
employees of the Company
3 Determining the amount of the Company Performance Bonus for 2023 for the employees whose remuneration is determined
by the Board of Directors of the Company
3 Amending the terms of the IPO Bonus for the management staff of the Company
3 Considering the proposals for the annual review of the salaries of the employees whose remuneration shall be determined
by the Board of Directors of the Company
3 Determining the amount and conditions of remuneration and compensations paid to the employees of the Internal Audit
Service of the Company
3 Determining the amount of the Company Performance Bonus for 2023 to the employees whose remuneration is determined
by the Board of Directors of the Company
3 Approving the amended list of the Company’s employees eligible for a grant of the IPO bonus
3 Approving the amended list of the Company’s employees eligible for a grant of LTI
3 Salary increase for the CEO
3 Approving the amendments to the labour contract with the CEO
3 Determining the amount of the 2024 Year End Bonus payment to the employees of the Company whose remuneration is
determined by the Board of the Directors of the Company
3 Approving the terms of the Company Performance Bonus (KPIs) for 2025 for the employees whose terms of remuneration are
determined or approved by the Board of the Directors
3 Approving the terms of the payment of the Long-Term Incentive (KPIs) for 2025-2027 for the employees of the Company
whose terms of remuneration are determined or approved by the Board of the Directors
3 Amending the lists of eligible employees to receive the IPO bonus and LTI
Matters related to
subsidiaries
(FlyArystan JSC)
►
Deciding on entering into interested-party transactions by FlyArystan JSC
►
Determination and approval of the amount of remuneration of the President of FlyArystan JSC
►
Company Performance Bonus for 2023
►
Payment of the first tranche of the IPO bonus to the President of FlyArystan JSC
►
Salary Increase for the President of FlyArystan JSC
►
Termination of authorities and election of the President of FlyArystan JSC
►
Termination of authorities and election of the member of the Board of Directors of FlyArystan JSC
►
Considering information about the appeals of the Sole Shareholder of FlyArystan JSC to the actions of FlyArystan JSC and its
officials in 2023
►
Approving the audited annual financial statements of FlyArystan JSC for the year ended 31 December 2023
►
Approving the procedure for distributing the net income of FlyArystan JSC for the year 2023, deciding on payment of dividends
on ordinary shares and approving the amount of the dividend for the year 2023 per one ordinary share of FlyArystan JSC
►
Determining and approving the amount and terms of payment of remuneration to the President of FlyArystan JSC
►
Approving the restated Charter of FlyArystan JSC
►
Approving the Annual Budget of FlyArystan JSC for 2025
►
Approving the Business Plan of FlyArystan JSC for 2025-2029
►
Approving the 2024 Year-End Bonus for the President of FlyArystan JSC
►
Approving the terms of the Company Performance Bonus (KPIs) for 2025 to the President of FlyArystan JSC
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
107
Corporate Governance report
Strategic Planning Committee report
Garry Kingshott
Chair
Roles and responsibilities
The Strategic Planning Committee assists with the effective
performance of the Board of Directors and makes
recommendations to the Board for making decisions on the
following issues:
►
Determining the Company’s priority areas of business activity and
development
►
Approving the long-term strategy of the development, the
medium-term and short-term business plans (development plan
and annual budget) and major investment projects
►
Reviewing the Company’s performance to budget, business plan
and ten-year strategy
►
Corporate governance issues
►
The Company’s strategy in view of changes in the economic,
political, social and competitive environment
►
Improvements to the Company’s long-term performance and
competitiveness in the aviation transportation market
Composition and attendance
Name Position Meetings attended
(total 4)
Garry Kingshott Committee Chair
Independent Non-Executive
Director
Janet Heckman Independent Non-Executive
Director
Diyas Assanov
1
Independent Non-Executive
Director
Simon Wood
2
Non-Executive Director
Myles Westcott
3
Non-Executive Director
1 Member of the Committee since 19 November 2024.
2 Member of the Committee since 18 June 2024.
3 Member of the Committee until 30 May 2024.
Main activities during 2024
During 2024, one of the Committee’s major focuses was on the
Company’s post-IPO performance and the execution of the
business strategies the Company committed to investors. At each
meeting, the Committee received an Investor Relations update and
made recommendations to the Board on various related matters.
With the start of separate operations of FlyArystan, the
Committee’s responsibility has been extended to matters related
to the Company’s subsidiary, including recommendations to the
Board on issues related to corporate governance and the business
operations of FlyArystan. In November 2024, the Committee
recommended approval of FlyArystan’s Annual Budget for 2025
and the Business Plan (Development Plan) for 2025–2029.
The Committee has also been engaged in regular reviews of the
Company’s performance against the budget and cash forecast
reports. It also made recommendations about the procedure for
the distribution of the net income and payment of shareholder
dividends for 2023.
Looking to the future, the Committee recommended approval of
the Company’s Annual Budget for 2025 and the Business Plan
(Development Plan) for 2025–2029 as well as continuing the work
on the implementation of the proposal of the management of the
Company on the creation of a new legal entity (commercial
company) for provision of ground handling services wholly owned
by the Company.
Priorities for 2025
The Strategic Planning Committee will continue to fulfil its general
responsibilities with a focus on monitoring new projects and carrying
out its activities in accordance with the approved plan of work, which
includes:
►
Considering the opportunities for improvements of the Company’s
long-term performance and competitiveness
►
Reviewing the Company’s performance against budget, business
plan and ten-year strategy
►
Reviewing regular updates on the Company’s cash position
►
Reviewing regular updates on the Company’s investor relations
►
Considering the Annual Budget and Business Plan for the next
five-year cycle
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
108
Yeldar Abdrazakov has chaired the Committee since October
2022. He brings substantial market expertise and is supported
by a senior management team with strong ESG Yeldar
Abdrazakov has chaired the Committee since October 2022. He
brings substantial market expertise and is supported by a senior
management team with strong ESG crdentials. Yeldar has the
necessary experience to successfully lead the development and
oversight of the Company’s ESG systems and strategy.
Roles and responsibilities
The ESG Committee develops recommendations to the Board
on building an effective ESG system in the Company. The ESG
Committee is responsible for:
►
Overseeing the Company’s ESG-related goals, metrics and initiatives
►
Monitoring the Company’s progress towards achieving its ESG objectives
►
Review of and recommendations for approving ESG-related policies
►
Review and approval of ESG-related disclosures in the Company’s
Annual Report
Composition and attendance
Name Position Meetings attended
(total 5)
Yeldar
Abdrazakov
Committee Chair
Independent Non-Executive
Director
Janet Heckman Independent Non-Executive
Director
Simon Wood Non-Executive Director
Aidar Ryskulov Non-Executive Director
Diyas Assanov
1
Independent Non-Executive
Director
1 Member of the Committee since 19 November 2024.
Composition and attendance
Name Position Meetings attended
(total 4)
Garry Kingshott Committee Chair
Independent Non-Executive
Director
Janet Heckman Independent Non-Executive
Director
Diyas Assanov
1
Independent Non-Executive
Director
Simon Wood
2
Non-Executive Director
Myles Westcott
3
Non-Executive Director
1 Member of the Committee since 19 November 2024.
2 Member of the Committee since 18 June 2024.
3 Member of the Committee until 30 May 2024.
Corporate Governance report
ESG Committee report
Yeldar Abdrazakov
Chair
Main activities during 2024
In 2024, the ESG Committee held five meetings, including four
meetings in person.
The year commenced with the ESG Committee’s review of the
implementation status of key ESG initiatives undertaken in 2023, as
part of the broader ESG Strategy for 2023–2032. The Committee also
considered the findings of the joint study conducted with the
European Bank for Reconstruction and Development (EBRD) and
KazMunayGas, on the potential for the production and consumption
of Sustainable Aviation Fuel (SAF) in Kazakhstan.
Further, the Committee reviewed the results of the limited
assurance of non-financial indicators presented in the Sustainability
section of the Company’s Integrated Annual Report 2023, supporting
efforts to enhance data reliability and stakeholder confidence.
Throughout the year, the Committee continued to monitor the
progress of the Climate-Related Risks and Opportunities Project, which
aligns with the TCFD framework and aims to identify, assess and
manage climate-related risks and opportunities. More information on
the Company’s governance of climate-related risks and the TCFD
recommendations can be found on pages 188-195 of this report.
In addition, the Committee considered the findings of the periodic
ESG Review, which included an analysis of relevant industry trends
and an internal assessment of the Company’s ESG performance. The
Committee also reviewed the Company’s ESG Communications
Strategy, developed by the Corporate Communications Department,
as well as ESG-related materials published on external and internal
communication platforms aimed at building awareness of the
Company’s ESG initiatives and projects. For more information on
some of our other ESG initiatives, please refer to the Communities
section of this annual report on pages 72-73.
Priorities for 2025
In 2025, the ESG Committee will continue to support the Company’s
efforts toward a more sustainable future, in line with global aviation
developments, standards and evolving regulations. Priorities will include
the finalisation and verification of the existing Low Carbon Development
Program (LCDP), with consideration of a 2050 net-zero target and setting
SAF blending benchmarks. Focus is also expected to be on building the
sustainable procurement system, waste management, calculating the
Scope 3 emissions and preparing disclosures in accordance with the IFRS
S2. Social responsibility will remain central, with attention to workforce
engagement, wellbeing, diversity, and ESG-focused training. Stakeholder
engagement and cross-industry collaboration may be encouraged, to
reinforce the Company’s role as a responsible connector of people,
cultures and economies.
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
109
Corporate Governance report
Division of responsibilities
Air Astana JSC is committed to maintaining high standards of corporate governance.
The aims of the Company’s corporate governance framework are to:
►
manage with due responsibility, accountability and effectiveness in order to maximise Company and shareholder value
►
provide transparency and due disclosure of information
►
ensure the effectiveness of risk management and its internal control system
Board roles and responsibilities
Role of the Chairman: Nurlan Zhakupov
The Chairman, who is a Non-Executive Director, is responsible for both the leadership, and the effectiveness, of all the functions of the Board.
In this role, he is supported by the Independent Directors. The Chairman oversees the work of the Board of Directors, ensures the Board’s
effective performance across its areas of responsibility, and that all Directors make a contribution to the Board’s activities, including
interaction with the CEO of the Company.
Role of other Non-Executive Directors: Simon Wood, Aidar Ryskulov
Any shareholder of the Company can nominate Non-Executive Directors to be elected by the General Meeting of shareholders, subject to
compliance with the Company’s Charter. These nominees bring diverse financial and operational experience and expertise to the Board and
its Committees, as well as adding an external perspective and objectivity to the Board’s decision-making. In addition to their involvement
with the development, approval and review of Company strategy, our Non-Executive Directors are able to provide constructive appraisals of
the performance of the Executive team.
Role of Independent Non-Executive Directors: Yeldar Abdrazakov, Keith Gaebel, Janet Heckman, Garry Kingshott, Diyas Assanov
The Board is balanced by the selection of Independent Directors, who complement the composition of the Board through their skills, valuable
experience and diversity. Independent directors provide a fresh perspective and objectively assess the Company’s strategy, goals and
situation. They provide an independent, external perspective, offering guidance, oversight, and strategic input.
Role of the CEO: Peter Foster
The Chief Executive Officer sits on the Board of Directors, has responsibility for the day-to-day activity of the Company, and has a legal
mandate to make decisions on any matters relating to the activity of the Company that are not, under the JSC Law, other legislative acts of
Kazakhstan or the Charter, within the competence of other bodies or officers of the Company.
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
110
Supporting roles
Role of the Corporate Secretary
The Corporate Secretary plays a major role in enabling open dialogue across the business, while also ensuring all the Company’s different
governing bodies uphold both legislative and Company requirements. The Corporate Secretary’s role is also to safeguard the rights of all
shareholders and ensure shareholder communications are considered by the relevant body, and resolve any disputes involving shareholders’
rights. Board approval is required for the appointment and removal of the Corporate Secretary.
Role of the Internal Audit Service
The Internal Audit Service provides risk-based and objective assurance, advice and insight to protect and enhance the value of the Company.
Role of Compliance Service and Sustainability Department*
The mission of the Compliance Service and Sustainability Department is to assist the Company in achieving its strategic goals in accordance
with the requirements of legislative, ethical and social norms (compliance) and without damage to its sustainability from a long-term
perspective, taking into consideration stakeholders’ expectations (sustainability).
* In July 2024, the Board of Directors decided to restructure the Compliance Service and Sustainability Department by dividing it into two separate structural units, namely:
The Compliance Service, which reports to the Board of Directors, with its activities overseen by the Audit Committee, and the Sustainability Department which reports to the
CEO, with its activities overseen by the ESG Committee.
The nine members of the Board of Directors – three Non-Executive Directors, five Independent Non-Executive Directors and the CEO of the
Company representing the Senior Management Team – uphold Air Astana’s corporate governance principles and, in doing so, ensure the
Company generates long-term shareholder value through its safe, sustainable and successful operations.
Corporate Governance report Division of responsibilities continued
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Nurlan Zhakupov
Chairman of the Board
of Directors
Non-Executive Director
Representative of the
shareholder National Welfare
Fund Samruk-Kazyna JSC
Appointed December 2023
Nurlan Zhakupov graduated from Moscow
State Institute of International Relations of
the Ministry of Foreign Affairs of the Russian
Federation: Candidate of economic sciences;
Master of Economics and Bachelor of
Economics (International Economic Relations
Department). Prior to his appointment as the
CEO of National Welfare Fund Samruk-
Kazyna JSC in April 2023, Mr. Zhakupov
served in a variety of management and
senior management positions. He held the
post of the Chief Executive Officer of
Kazakhstan Investment Development Fund
Management Company Ltd, representative
of Rothschild & Co in Kazakhstan, Chief
Executive Officer of JSC SEC ASTANA,
Managing Director for Development and
Investment and member of the
Management Board at NAC Kazatomprom
JSC. He previously held various managerial
positions in finance in Royal Bank of
Scotland, UBS BANK, Head of Astana office,
National Mining Company Tau-Ken Samruk,
Credit Suisse, Research, Investment and
Development Ltd, Chambishi Metals Plc,
Eurasian Industrial Association.
Other appointments:
Chairman of the Management Board of
National Welfare Fund Samruk-Kazyna JSC
Member of the Board of Directors of the
National Welfare Fund Samruk-Kazyna JSC
Aidar Ryskulov
Non-Executive Director
Representative of the
shareholder National
Welfare Fund Samruk-
Kazyna JSC
Appointed September 2023
Aidar Ryskulov holds a Master of Business
Administration degree from Nazarbayev
University (Executive MBA). He is a
graduate of Karaganda State University
(named after E.A. Buketov) majoring in
finance and credit. He has held senior
positions in finance for more than 20
years. He was a member of the Board of
Directors in various companies and banks,
including Sekerbank T.A.S. (Turkey),
Development Bank of Kazakhstan,
Investment Fund of Kazakhstan,
Kazexportgarant, Alliance Bank and
Samruk-Kazyna Finance.
Other appointments:
Managing Director for Economics and
Finance of Samruk-Kazyna JSC
Member of the Board of Directors of
Kazatomprom JSC
Member of the Board of Directors of National
Company Kazakhstan TemirZholy JSC
Peter Foster
Executive Director,
Chief Executive Officer of Air
Astana JSC
Appointed as CEO October 2005
Appointed August 2019
Mr. Foster has been CEO of Air Astana JSC
since October 2005. In August 2019, after
the position of CEO had been added to the
composition of the Board of Directors, Mr.
Foster was appointed as a member of the
Board of Directors of the Company as an
Executive Director. He entered the airline
industry immediately after graduating
from Cambridge University in 1982, as a
management trainee of John Swire and
Sons (HK) Ltd, the owners of Cathay Pacific
Airways Ltd. From 1982 to 1999 he served
in a variety of management and senior
management positions with Cathay Pacific
Airways in Hong Kong, Asia, Australia and
Europe, and underwent business
management training at INSEAD, France.
Mr. Foster left Cathay Pacific Airways in
1999 to head up the rehabilitation team of
Philippine Airlines Inc. He subsequently
served as Chief Executive Officer of Royal
Brunei Airlines from 2002 to 2005 prior to
his appointment as the CEO of Air Astana.
In the 2015 UK New Year’s Honours List,
Peter Foster was awarded Officer of the
Order of the British Empire (OBE) for his
services to British aviation in Kazakhstan.
Other appointments:
Chairman of the Board of Directors of
FlyArystan JSC
Simon Wood
Non-Executive Director
Representative of the
shareholder BAE Systems
(Kazakhstan) Limited
Appointed January 2019
Simon Wood joined BAE Systems in 1996
and has held a number of senior finance
positions within BAE Systems across a
number of sectors, including Military
Aircraft, Maritime, Land and Commercial
Aircraft. In addition to his functional role,
Mr. Wood has also had responsibility for
Strategy and Planning, Business
Transformation and Improvement,
Systems Implementation, Customer
Relationship Management and Operational
Business Delivery.
Other appointments:
CFO of BAE Systems Maritime and Land
Sector since March 2023
Member of the Chartered Institute of
Management Accountants
Audit Committee
ESG Committee
Nomination and
Remuneration Committee
Strategic Planning Committee
Treasury Committee
Chair
Corporate Governance report
Confident and experienced
leadership
Board of Directors
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
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Yeldar
Abdrazakov
Non-Executive
Independent Director
Appointed March 2020
Yeldar Abdrazakov holds a BA and MSc in
International Economic Relations from
Yassawi University, Turkistan and has also
finished the General Management
Programme at Harvard Business School,
Boston, USA. Yeldar has held senior roles in
commercial and investment banking for
over 30 years. He was Managing Director
from 1995 to 2003 at Kazkommertsbank
(KAZKOM); CEO from 2002 to 2004 at
Kazkommerts Securities, founder & CEO at
the Centras Group since 2004. Yeldar is a
chartered director at the UK’s International
Institute of Directors (IoD) and the Chairman
of the Kazakhstan Competitiveness Council.
Other appointments:
Member of the Board of Directors of KASE
Janet
Heckman
Non-Executive
Independent Director
Appointed January 2019
Janet Heckman holds a Master of Science
in Foreign Service from Georgetown
University in Washington, D.C. Between
1980 and 2012 she held various positions
at Citi with a focus on corporate banking.
She was the Managing Director for Citi’s
corporate and investment banking
activities in Algeria from 2008 to 2012. Ms.
Heckman joined EBRD in 2012 as a Country
Director for Kazakhstan. She was a
Managing Director for Southern and
Eastern Mediterranean (SEMED) for EBRD
from January 2017 to December 2019.
Other appointments:
Independent Non-Executive Director –
Member of the Board of Directors of
Astana International Exchange (AIX)
Independent Non-Executive Director –
Member of the Supervisory Board of TBC
Bank (Georgia) PLC
Independent Non-Executive Director –
Member of the Board of Directors of
Citibank Kazakhstan JSC
Keith Gaebel
Non-Executive
Independent Director
Appointed March 2020
Keith Gaebel is a leading expert in
financial reporting and corporate
governance. During his 25 years’
experience with large international
chartered accounting firms, Mr. Gaebel
held various positions including the Head
of the Financial Reporting Group (FRG) for
the Commonwealth of Independent
States (PricewaterhouseCoopers – 2000 to
2004; Ernst & Young – 2004 to 2008) and
was a Global Authority on various
International Financial Reporting
Standards. In addition, as a recognised
world-class expert, he was involved in
the development of various international
financial reporting standards. As Head of
the FRG, he supported clients’ public
offerings by reviewing for compliance
with financial reporting and corporate
governance. Mr. Gaebel was the Ernst &
Young Managing Partner for Central Asia
and Caucasus from 2008 to 2013.
Other appointments:
Independent Non-Executive Director in
National Payment Corporation of the
National Bank of the Republic of
Kazakhstan JSC
Garry Kingshott
Non-Executive
Independent Director
Appointed August 2019
After a successful early career in various
FMCG businesses from 1974 to 1990, Mr.
Kingshott transitioned into Aviation
joining Ansett Airlines (Australia) in 1990.
He now has 30 years’ combined
experience in the Aviation, Travel and
Tourism and Airline industries, spanning
three continents. Most recently Mr.
Kingshott served Cebu Air Inc. as Chief
Executive from 2008 to 2016, overseeing
a successful IPO in 2010, and served as a
member of the Advisory Board at Cebu
Air Inc. until June 2022. Mr. Kingshott has
served as a Company Director/ Chairman
for a variety of businesses including
Airlines, Travel Agencies, National
Tourism and Financial Services. Mr.
Kingshott is a member of the Australian
Institute of Company Directors (MAICD).
Other appointments:
None
Diyas Assanov
Non-Executive
Independent Director
Appointed May 2024
Mr. Assanov holds a Bachelor’s degree in
international relations and engineering
systems management from United States
Military Academy at West Point and a
Bachelor’s degree in international law from
the Kazakh State Law University, Kazakhstan.
During the last four years, Mr. Assanov has
served in the role of the General Director of
the Siemens in Kazakhstan & Central Asia, as
well as the Head of its Digital Industries and
Smart Infrastructure businesses in the
region. Prior to that, he was the General
Counsel of Siemens Energy, Russia, Eastern
Europe and Central Asia.
Mr. Assanov’s extensive experience in
engineering, transport and communications
is instrumental in supporting the Company’s
next stage of development, particularly in
our continued digitalisation plan.
Other appointments:
Chief Executive Officer of Siemens
Kazakhstan
Deputy Chairperson of the Board
of Directors of European Business
Association of Kazakhstan
Chairperson of the Association of
German Economy in Kazakhstan
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
113
Corporate Governance report
Experienced and proven management
Senior management team
Peter Foster
Chief Executive Officer
of Air Astana JSC
See page 112
Ibrahim Canliel
Chief Financial
Officer
Years in the Company: 22
Ibrahim Canliel has been with Air
Astana since its early stages in 2003
and he has served in a range of roles
across the Company. Prior to his
current role of Chief Financial Officer
since 2017, he served as Senior Vice
President Commercial Group, Vice
President and Senior Vice President
Marketing and Sales, Director
Commercial Planning.
He started his career over 35 years
ago in the travel industry and has
26 years of aviation management
experience. Prior to joining Air
Astana, he worked for KLM Royal
Dutch Airlines, briefly in the UAE and
thereafter based in Kazakhstan
in charge of the Central Asia and
Caucasus region. He is currently
serving his eighth term as a Board
member at EUROBAK.
Ibrahim holds a Bachelor Degree in
Economics from Marmara University,
an MBA of the Bosphorus University
and more recently completed the
Directors’ Programme at Cranfield
University.
Filippos Siakkas
Chief Operating
Officer
Years in the Company: 11
Filippos studied Business
Management & Accounting before
undergoing ab-initio pilot training in
the US in 1988. He has 20 years of
experience in airline management
and held senior positions in flight
operations and training for Olympic
Airways, which he joined in 1989. He
left Olympic in 2013 to join Air Astana.
At Air Astana, Filippos has focused on
transforming flight crew training with
innovative solutions such as world
leading practical crew resource
management, post-command
upgrade training, self-learning in low
level training devices and
standardising the pilot selection
process. More recently, he managed
the procurement of a new Airbus
A320 full flight simulator in Astana,
the first of its kind in Kazakhstan,
which will increase pilot productivity
and raise operational and training
standards. Since 2020 he has been
involved in decision-making and
management of key operational and
business aspects, projects and targets.
Since November 2022 he has been
appointed to the role of Chief
Operating Officer.
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
114
Gerhard Coetzee
Chief Safety Compliance
Officer
Years in the Company: 19
Gerhard started his career as a South
African Air Force navigator completing
his service in the position of Staff
Officer Flight Safety responsible for
Accident Prevention and Aviation
Safety, including CRM, programmes.
He has practised and held formal
appointments in aviation safety and
flight operations management for the
past 35 years, including as managing
consultant with BAE Systems for
seven years and with Air Astana the
past 16 years.
Gerhard helped establish the Safety
Management System in Air Astana
at start-up and, since 2006, is also
responsible for the Compliance
Monitoring programme managing an
extended team of dedicated staff.
Gerhard’s contribution to safety and
operational performance has been
formally acknowledged by various
organisations including the SAAF, FAA
and NIMA as well as BAE Systems.
He holds an Honours degree in
transport economics from the
University of South Africa, is a
qualified Air Accident Investigator
with qualifications in Aviation Safety
Programme Management, Crew
Resource Management and Flight
Procedure Design.
Yevgeniya Ni
Chief Human Resources
Officer
Years in the Company: 23
Yevgeniya graduated from Karaganda
State University with a degree in
foreign languages and a degree in
law. She started her career at Air
Astana as an Executive Assistant to
the President in 2002, and since 2005
heads the Human Resources and
Administration Department,
responsible for overall HR function and
services including Recruitment,
Training, HSE, and Facilities
Management. Under her leadership,
the Company introduced a transparent
system of recruitment and corporate
training, as well as an employee
performance appraisal and
remuneration system. The Company
holds the following HR awards: ‘WOW
HR’ in 2018–2019, ‘Best HR Brand in
Central Asia’ in 2017–2020
(Headhunter), ‘Best HR Director’ in
2018–2019 (Growth Forum
Kazakhstan), ‘Best Employer’ in
2016–2020 by Universum and ‘Best
Employer in Transport and Logistics’ in
2020–2021 (Randstad Employer Brand
Research).
Yevgeniya is a certified Senior
Professional in Human Resources –
International, member of Airline
People Directors Council (APDC) and
regularly takes part in professional
conferences as an expert and speaker.
Yerdaulet Shamshiyev
Chief Government Relations
Officer
Years in the Company: 22
Yerdaulet was one of Air Astana’s first
employees and has over 20 years’
experience in aviation. He joined the
airline as Chief Representative in the
Beijing office in 2002. In 2009 he was
appointed Regional General Manager
China and Mongolia of Air Astana. He
currently holds the position of Chief
Government Relations Officer. Prior to
joining Air Astana, Yerdaulet worked
at the Almaty International Airport and
Air Kazakhstan airline. He graduated
from the Beijing Language University
and Academy of Civil Aviation, Almaty.
Piyush Taori
Chief Digital and Information
Officer
Years in the Company: 2
Piyush has a Bachelors’ degree in
Electronics Engineering and a
Master’s degree in Software Systems
from Birla Institute of Technology &
Science, Pilani in India. He joined Air
Astana group as CIO for FlyArystan in
August 2023 and was subsequently
appointed Chief Digital and Information
Officer for the Air Astana Group. Prior
to joining Air Astana, Piyush worked
in the Middle East for Emirates
Airlines, Qatar Airways and Gulf Air
for well over two decades. He held
different IT management and senior
management roles in these airlines,
heading IT at Gulf Air just before
joining Air Astana. Piyush has
substantial experience of leading
large teams and managing large
scale in-house software development,
including large product development.
In his previous roles, he also led
large-scale digital transformation
programmes, driving core
modernisation of IT infrastructure
and cloud migration.
Corporate Governance report Senior management team continued
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AIR ASTANA GROUP Integrated Annual Report 2024
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Corporate Governance report
Composition, succession and
evaluation
The process for Board nominations is led by the Nomination
and Remuneration Committee, which also ensures the
Company has succession plans in place for both Board and
senior management.
Board composition and independence
The Board is elected by cumulative voting at the General Meeting of
shareholders, unless one candidate is proposed to be elected to fill
one vacancy.
Mr Nurlan Zhakupov, Chairman of the Board since December 2023, is
nominated by the shareholder National Welfare Fund Samruk-Kazyna
JSC. To mitigate any concerns about independence, we have five
Independent Directors on the Board.
Air Astana acknowledges that Standard 20 of the AIFC Market Rules
recommends the Chairman of a Board of Directors meet the criteria
for independence. However, as set out in the Charter and as adopted
by principle 2.5 of the Code, the Chairman of the Board of Directors
shall be elected from among the members of the Board of Directors
being representatives of the Shareholder who owns the largest
number of Shares at the relevant time, provided this Shareholder
owns more than 30% voting Shares. In accordance with these
provisions, Samruk-Kazyna, as the largest shareholder at the date of
this report, and holding on that date 41% of the share capital of the
Company, has appointed Mr Zhakupov, a representative of Samruk-
Kazyna, as Chairman. Mr Zhakupov does not meet the criteria of
independence.
According to the Standard 26A of the AIFC Market Rules, the Board
should include the Chief Executive Officer and the Chief Financial
Officer. The Company has partly adopted the standard.
During the year, a number of changes were made to the composition
of the Board and its Committees. In making these changes, the
Nomination and Remuneration Committee and Board took into
account various considerations, including Board diversity,
independence and the combination of skills, knowledge and
experience of the Directors.
According to the previously announced plans, as provided for in the
Prospectus of the Company published before the IPO in February
2024, the Non-Executive Director, representative of shareholder BAE
Systems (Kazakhstan) Limited, Myles St John Westcott, has stepped
down from the Board of Directors of the Company effective from 30
May 2024.
Diyas Assanov has been appointed as an Independent Non-Executive
Director, effective from 31 May 2024.
Mr Assanov’s extensive experience in engineering, transport and
communications is considered to be instrumental in supporting the
Company’s next stage of development, particularly in its continued
digitalisation plan.
With that, the Company’s Board and the management team
recognises Mr Westcott’s huge support of and contribution to the
success of the Air Astana Group over the last six years of his Board
membership.
We believe the composition of the Board has continued to improve
and, in line with the Company’s corporate governance framework, is
well balanced and most advantageous in the competencies and
diversity of Board members, as well as the representation of
shareholders’ interests.
The Board is satisfied that each member of its Directors is able to
allocate sufficient time, and discharge his or her duties effectively, as
part of Air Astana’s Board.
Board evaluation
According to the Code, the activities of the Board of Directors are
subject to an external independent evaluation every three years.
External evaluation of Board performance was performed in 2023 by
Nestor Advisors Ltd, a London-based specialist corporate governance
advisory firm, with subsequent self-assessment in 2024. The
evaluation in 2023 was conducted via a questionnaire-based survey
and interviews with Board members, the Corporate Secretary and
several senior executives. In their feedback, the independent
consultants noted the Board’s close involvement in overseeing key
areas of the Company’s operations, internal control and risk
management practices and the audit process, as well as the Board’s
well-established procedures and good support from the Corporate
Secretarial function. It also reported that the composition of the
Board, through its highly skilled members, had a healthy mix of
international and local expertise, with the Independent Directors
contributing to decision-making. In 2024, the Board of Directors
conducted a self-evaluation through an online multiple-choice
questionnaire, based on the previous external evaluation. Overall, the
Board was satisfied with its functioning, with members
acknowledging strong engagement, collaboration, and a diverse set
of skills and experiences. The Board also recognised its
comprehensive understanding of Air Astana’s risk profile and the
effectiveness of its internal control system. While the Board valued
the work of its committees, it identified areas for improvement,
particularly in strategy, gender diversity and procedural aspects,
which it will address in 2025.
In 2025, the Board will undertake another self-assessment that will
also assist in monitoring the implementation of the recommendations
and any improvements.
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
116
Board induction and training
In accordance with the approved Induction Programme, within the first
six months of their appointment, newly appointed Directors undergo an
onboarding programme. This has been developed to bring them up to
speed quickly on Air Astana JSC and its key assets, representatives of its
management bodies, existing practices and standards of corporate
governance, specific features of the Company and the industry, and
other information necessary to perform their duties as members of the
Board of Directors. The new Independent Non-Executive Director, Diyas
Assanov, underwent the induction process, which included
familiarisation with the corporate policies and procedures. A special
induction session was arranged at Air Astana’s offices, where he got a
chance to meet key managers, who gave an overview of the
Company’s business and plans.
All the members of the Board of Directors received training focused on
post-IPO life, covering different aspects, such as reporting obligations,
continuing obligations, legal considerations and corporate governance
requirements.
Information and support
The Chairman of the Board is responsible for ensuring the timely
receipt by the Directors of the accurate, clear and relevant information
needed to enable them to perform their duties.
The Senior Management Team and IAS are obliged to provide such
information and the Directors may request further clarifications and
explanations as necessary. The Board of Directors and its Committees
are entitled to use the services of external experts, consultants and
additional resources to enable them to carry out their duties in full.
Financial provision for this is made in the Company’s budget each year.
All Directors have access to the advice and services of the Corporate
Secretary, who is responsible to the Board on matters of corporate
governance and compliance with Board procedures. The Corporate
Secretary manages the information flow within the Board of Directors
and its Committees, and also between the Senior Management Team
and the Board of Directors.
The Corporate Secretary has a key role in preparing and overseeing
the Board of Directors’ meetings and the General Meeting of
Shareholders, ensuring the disclosure and dissemination of
information comply with the rights and interests of shareholders.
Re-election
The term of office for each member of the Воаrd of Dirесtоrs is
dеtеrminеd bу the Gеnеrаl Shагеhоldеrs’ Meeting, but should not be
for less than two уеаrs. Once elected, there is no limit to the number
of times members may be re-elected to the Воаrd of Dirесtогs. The
effectiveness and commitment of each Board member are also
reviewed, to ensure the interests of the shareholders are fairly and
objectively represented. Taking account of the other offices and
interests held by the current Independent Directors, the Board is
satisfied with the individual skills, relevant experience, contributions
and time commitment of each.
Following the IPO in 2024, Board members were re-appointed for the
term of two years, with the perspective of their re-election in 2026.
Corporate Governance report Composition, succession and evaluation continued
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117
Main activities during 2024
Board and Committees
Throughout the year, the Committee made several recommendations
concerning the composition of the Board of Directors and its various
committees. These included recommendations for the re-election of
members of the Board of Directors and Committees. Additionally, the
Committee reviewed and made recommendations concerning the
composition of the Strategic Planning and ESG Committees of the
Board of Directors in view of changes to the Board.
Terminations and appointments
Several significant decisions were made regarding terminations and
appointments within the Group. These included recommendations
regarding the termination of the authorities of the President of
FlyArystan JSC and the election of a new President. The Committee
also recommended the appointment of the Head of the Company’s
Compliance Service following the restructuring of the Compliance
Service and Sustainability Department into two separate units: the
Compliance Service, which reports to the Board of Directors, and the
Sustainability Department, which reports to the CEO.
Remuneration, compensation and incentive plans
The Committee addressed several important matters related to
remuneration and incentive plans for both Board members and
employees of the Company. This included recommending the amount
and terms of remuneration and compensation for Independent
Directors and the President of FlyArystan JSC, as well as determining
the Company Performance Bonus and 2024 Year-End Bonus for
employees whose remuneration is set by the Board of Directors. The
Committee also reviewed and updated the Long-Term Incentive (LTI)
and Employee Share Ownership Plan (ESOP) for eligible employees in
terms of the employee grades and lists. Additionally, the Committee
recommended for approval the terms of payment of the 2025–2027 LTI
for the Chief Executive Officer and other eligible employees by
establishing KPIs and the targets for 2025–2027 to ensure alignment
with the Company’s strategic objectives and performance goals.
External engagement
In 2024, the Remuneration and Nomination Committee engaged Korn
Ferry to provide additional support in matters of remuneration and in
the search and selection process for candidates for the role of an
additional Independent Non-Executive Director. Korn Ferry had no
connection or affiliation with the Company or individual directors.
Corporate Governance report
Nomination and Remuneration
Committee report
Janet Heckman
Chair
fulfilling our promises
AIR ASTANA GROUP Integrated Annual Report 2024
118
Composition and attendance
Name Position Meetings attended
(total 10)
Janet Heckman Committee Chair
Independent Non-Executive
Director
Garry Kingshott Independent Non-Executive
Director
Yeldar Abdrazakov Independent Non-Executive
Director
Nurlan Zhakupov Non-Executive Director
Simon Wood
1
Non-Executive Director
Myles Westcott
2
Non-Executive Director
1 Member of the Committee since 18 June 2024.
2 Member of the Committee until 30 May 2024.
.
Roles and responsibilities
The Nomination and Remuneration Committee develops
recommendations for the Board of Directors regarding the
recruitment and selection of members of the Board of
Directors, the Executive Body, the head of the IAS, the
head of Compliance Service, the Corporate Secretary as
well as other employees whose appointment requires the
approval of the Board of Directors or Shareholders
according to Company’s Charter and the legislation of the
Republic of Kazakhstan. The Nomination and
Remuneration Committee meets regularly and is
responsible for the following:
►
Developing of requirements for candidate qualifications and
recommendations on election or nomination for the roles of,
amongst others, the Independent Non-Executive Directors and
the CEO of the Company
►
Ensuring the Board of Directors has the right balance of skills,
knowledge, independence and experience, having due regard
to diversity
►
Development of a succession planning policy for the Board of
Directors and Executive Management
►
Recommendations on the policy and structure of
remuneration
►
Review of the Board’s performance evaluation process
Corporate Governance report Nomination and Remuneration Committee report continued
Priorities for 2025
The Nomination and Remuneration Committee will continue to fulfil its
general responsibilities and carry out its activities according to the
approved plan of work for 2025, with special focus on matters related to
the succession planning and diversity for the Board of Directors.
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
AIR ASTANA GROUP Integrated Annual Report 2024
119
Remuneration of the Board of Directors
According to the Company’s Charter, the amount and terms of
remuneration and compensation for the members of the Board of
Directors is determined by the General Shareholder’s Meeting, while
the remuneration of the Executive Body is decided by the Board of
Directors based on the recommendations of the Nomination and
Remuneration Committee.
According to the Company’s Policy of Remuneration of the Members
of the Board of Directors:
Independent Non-Executive Directors receive a base fee of
USD 55,222 (before taxes and obligatory payments in accordance
with the legislation of the Republic of Kazakhstan) per annum and
are reimbursed for expenses associated with the performance of
their duties, including travel-related costs
Independent Non-Executive Directors and their spouses receive
discounts for up to six travel tickets per year
Non-Executive Directors, who are not Independent Non-Executive
Directors, are not entitled to any fees
Non-Executive Directors do not participate in any incentive plans
There are no agreements in place that provide for benefits upon
termination of service
The Policy of Remuneration of the Members of the Board of Directors
is available at ir.airastana.com.
As at 31 December 2024, none of the Board members owned
Company shares.
Total remunerationpaid to Independent Non-Executive Directors in
2024 amounted to USD 214,577.
Remuneration of the Executive Body
Prior to the stock exchange listing, the Executive Body remuneration
was reviewed to ensure that, post-listing, it would remain market-
competitive and aligned with the achievement of key performance
indicators (KPIs), with the majority of potential variable pay provided
in shares. This structure is summarised as follows:
(i) Base salary
Base salary which is reviewed on an annual basis. Any
increases are generally in line with the average increase for the
rest of the workforce, albeit the Nomination and Remuneration
Committee retains the discretion to increase the salary above
this rate where appropriate.
(ii) Pension and benefits
The Executive Body may elect to participate in the Company
pension scheme or receive a cash amount in lieu of pension.
The pension contribution for the Executive Body will be a cash
allowance equivalent to 15% of base salary.
The benefits include health insurance for medical treatment,
compulsory and voluntary insurance from accidents, car
allowance, and partial coverage of children’s school payment.
(iii) Annual performance bonus
The annual bonus pay-out is determined following the end of
the financial year to which it relates, based on performance on
a range of pre-determined financial and strategic KPIs, with a
maximum bonus opportunity of 100% of base salary, payable
in cash.
The Nomination and Remuneration Committee has the
discretion to adjust the formulaic bonus outcome either
upwards or downwards if it believes it is not a fair and accurate
reflection of overall business performance and other relevant
performance factors.
(iv) Long-Term Incentive Plan (LTIP)
The Executive Body may be granted a conditional award of
shares each year. The value of Shares or GDRs subject to the
award can be a maximum of 150% of salary.
The amount of the LTIP is based on achievement of KPIs.
An amount equivalent to the value of dividends payable on
vested awards over the vesting period may be payable, in cash
or in shares.
Awards will vest after three years.
The Nomination and Remuneration Committee has the discretion
to adjust the vested LTIP outcome if it believes that the formulaic
outcome is not a fair and accurate reflection of overall business
performance and other relevant performance factors.
Corporate Governance report
Remuneration report
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AIR ASTANA GROUP Integrated Annual Report 2024
120
Corporate Governance report Remuneration report continued
(v) Shareholding requirement
The Executive Body must build and maintain a shareholding
equivalent to 200% of base salary. If the requirement is not
met, they must retain 50% of the Shares (net of tax) received
under the LTIP.
(vi) Recruitment policy
Remuneration packages for new appointments will be set in
line with the remuneration policy. For external appointments,
the Company recognises it may need to provide compensation
for forfeited awards from the individual’s previous employer
(buy-out awards). To the extent possible, the design of buy-out
awards will be made on a broadly like-for-like basis, taking into
account the performance conditions attached to the vesting of
the forfeited incentives, the timing of vesting and the likelihood
of vesting. Assistance may be provided for relocation.
(vii) Termination of employment
The Executive Body has a service contract requiring six months’
notice of termination from employees and twelve months’
notice from the Company.
The Company may, at its sole discretion, terminate the contract
immediately, at any time after notice is served, by making a
payment in lieu of notice equivalent to salary.
Specific terms apply to the annual bonus and LTIP to determine the
treatment of outstanding awards in different leaver circumstances.
In principle, if an executive resigns, they would forfeit outstanding
awards. However, if they leave in compassionate circumstances,
the award may continue to be payable.
(viii) Malus and clawback
Malus and clawback to the extent permissible under
Kazakhstani law applies to annual bonus and long-term
incentive awards at any time before the second anniversary of
the bonus payment date end of the vesting period. The specific
circumstances include a material misstatement of any member
of the Air Astana Group’s financial results, an error in assessing
a Performance Condition applying to the award, or if the
Participant commits an act (or acts) amounting to gross
misconduct that would have entitled their employer to
summarily dismiss them.
Total remuneration of the Executive Body for 2024 amounted to
USD 1,139 thousand including IPO award payable in cash.
IPO award
The Board of Directors determined that the Executive Body should
be granted a performance bonus in recognition of the strong
performance of the Company in the lead up to IPO. One third of the
value of the bonus is payable in cash on, or shortly after, listing, and
the remaining two thirds granted an award of shares on 17 February
2024 and vested on 17 February 2025.
LTIP award
The Executive Body received an LTIP award on 15 February 2024. The
value of Shares or GDRs subject to the award was equivalent to 150%
of salary, as at the date of grant. The award will vest after three years,
on 15 February 2027.
Performance conditions for this award are 60% based on a range
of net-profit-margin targets in relation to the 2026 year-end number.
The remaining 40% of the award will be based on the Company’s
total shareholder return (TSR) performance compared with a peer
group of other airlines, with vesting proportionate if the Company’s
TSR is between the median and top quartile relative to the TSR
performance of the peer group between the date of the IPO and
31 December 2026. For the Company, the starting TSR will be the
Offer Price and the closing TSR will be the three-month average prior
to 31 December 2026; and the starting TSR of the peer group will be
the three-month average prior to the date of the IPO and the closing
TSR will be the three-month average at period-end. Each Performance
Condition will be measured independently and 25% of each part of
the award will vest at the threshold level of performance.
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AIR ASTANA GROUP Integrated Annual Report 2024
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AIR ASTANA GROUP Integrated Annual Report 2024
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Roles and responsibilities
The Treasury Committee assisted the Board of Directors in
monitoring and improving the effectiveness of risk
management of the Company’s treasury functions.
The Treasury Committee is responsible for the following:
►
Verifying control mechanisms for the Company’s treasury activities
and ensuring the effectiveness and improvement of policies and
procedures in the treasury function
►
Monitoring treasury activities and notifying the Board of Directors
of risks and opportunities associated with them
Composition and attendance
Name Position Meetings attended
(total 8)
Keith Gaebel Committee Chair
Independent Non-Executive
Director
Simon Wood Non-Executive Director
Aidar Ryskulov Non-Executive Director
Corporate Governance report
Treasury Committee report
Keith Gaebel
Chair
Main activities during 2024
In 2024, the Treasury Committee continued to monitor activities in
regular reports received from the CFO, which set out details of cash
position, deposits, loans and finance leases, and available credit
lines. The Committee received quarterly reports on the Company’s
placed deposits and exposure to counterparty banks, to ensure
compliance with internal policies, and monitored liquidity levels
through regular cash forecast updates throughout the year. During
the year, the Committee additionally recommended that the Board
approve several items related to existing credit lines, approval
of amendments to the Cash Management, Bank Risk & Treasury
Reporting Policy, investment of free cash in U.S. Treasury bills,
an increase in the number of accredited banks, approval of credit
limits for newly accredited banks, and the opening of new bank
accounts. Following the Company’s IPO in February 2024, the
Treasury Committee also recommended that the Board approve
the repurchase of the Company’s ordinary shares and global
depositary receipts on the secondary market, as part of the
implementation of the Company’s Employee Incentive Plan.
In January 2025, to optimise the activities of the Board of Directors,
it reviewed the structure of the Committees and disbanded the
Treasury Committee, with the transfer of its functions to the Audit
Committee.
The workscope of the Treasury Committee has been migrated
into the Audit Committee.
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AIR ASTANA GROUP Integrated Annual Report 2024
123
Area of
Committee focus
Activities and actions
Financial
reporting
►
Received and reviewed reports from the external
auditor on the results of the audit of the consolidated
financial statements for the year ended
31 December 2023, for the six months ended
30 June 2024, for the nine months ended
30 September 2024
►
Reviewed the financial statements of the Group to
ensure integrity and consideration of the process
for confirming and recommending to the Board that
the 2024 Annual Report and Accounts was fair,
balanced and understandable
►
Reviewed the external auditor’s views on significant
accounting matters and accounting policies applied
in the financial statements of the Group
External auditor
►
Determination of the auditing organisation
performing the audit (review) of the financial
statements for the year ending 31 December 2024
and for the additional scope of work related to the
issuance of a Comfort Letter for the purposes of
the IPO
►
Deciding on uniting and conducting a single selection
procedure for the selection of a single external
auditor for the audit of financial statements of Air
Astana JSC and FlyArystan JSC for the years
2025-2027. Deciding on the composition of the
Unified Commission on the selection of a single
external auditor
►
Preliminary approval of the amended Procedure of
Air Astana JSC for selection of the audit organisation
Area of
Committee focus
Activities and Actions
Internal Audit
Service (IAS)
►
Regular reports on the activities of the IAS
►
Performance evaluation of the IAS for 2023
►
Changes to the 2024 Annual Audit Plan
►
Approval of the updated Assurance
Map for Air Astana
►
Approval of the Annual Audit Plan, budget of the IAS
and Key Performance Indicators of the IAS for 2025
►
Changes in the Regulations of the IAS
►
IAS staff changes and remuneration issues
Compliance and
ethical conduct
►
Termination of the authorities of the Senior
Compliance and Sustainability Officer due to split
of the Compliance and Sustainability department
into two departments; Appointment of the Head
of the Compliance Service
►
Regular report on activities of Compliance Service
including internal analysis of corruption risks
►
Preliminary approval of the restated Policy for
prevention and resolution of conflicts of interest,
including the updated Conflict of Interest Form
►
Preliminary approval of the restated Sanctions Policy,
including the updated Know Your Customer Form
►
Launch of the Annual Conflict of Interest Declaration
among Air Astana JSC employees and the Board of
Directors
►
Regular reports on compliance matters that cover
revision of compliance (corruption) risks at the
corporate level, identification of corruption risks at
the business process level, whistleblowing hotline,
internal investigations, conflicts of interest, sanctions
compliance, review and assessment of direct
purchases, third-party due diligence procedure,
review and assessment of candidates for positions
of INEDs and CEO-1 level
►
Approval of the risk-oriented annual plan of the
compliance function for 2024
►
Approval of the restated Regulation on Compliance
Service
Risk
management
and internal
control
►
Quarterly update of risk register and risk map
►
Quarterly reports on realised risks
►
Preliminary approval of the Company’s risk appetite
and risk capacity
►
Introduction to the Head of Internal Controls of the
Company
►
Regular reports of the Internal Control Service on
internal controls enhancement
►
IT security update
►
Preliminary approval of the restated Accounting
Policy of the Company
►
Preliminary approval of the restated policy on
organisation of insurance coverage of the Company
Other matters
►
FlyArystan JSC’s matters: annual financial statements
Main activities during 2024
s
Corporate Governance report
Audit Committee report
Keith Gaebel
Chair
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AIR ASTANA GROUP Integrated Annual Report 2024
124
Roles and responsibilities
The Audit Committee supports the Board of Directors in
overseeing the Company’s financial and economic activities,
the effectiveness of internal control and risk management
systems, the application of the corporate governance standards,
the independence of the external and internal audit, and
compliance with applicable laws and regulations of the
Republic of Kazakhstan.
Meetings of the Audit Committee take place at least once a quarter.
The Audit Committee is responsible for:
►
Overseeing the framework and effectiveness of the Company’s
systems of risk management and internal control, compliance and
internal audit through regular reports from the Risk Management
Division, the Internal Control Service, the Compliance Service and
the Internal Audit Service
►
Assessing aspects of the independence of the external auditor
and the Internal Audit Service
►
Developing recommendations to the Company’s Board of Directors
on the appointment and change of the external auditor, on
determining the amount to be paid and on evaluating the quality
of services rendered by the external auditor, and on receiving the
related services from the external auditor when it is necessary
►
Presenting recommendations for the Board of Directors on
determining the number of employees, appointing (or terminating
service) employees, defining the procedures for the work of the
Internal Audit Service and the amount and terms of remuneration
and incentives of the employees of the Internal Audit Service
►
Reviewing reports from the Company’s management and external
auditor on material accounting matters and decisions
Detailed biographies are provided on pages 113 of all members of the
Audit Committee. The Chairman of the Committee has extensive
experience and expertise in financial reporting, and is considered to
have recent and relevant financial experience. All members of the
Committee are independent Non-Executive Directors, and the Board is
satisfied that the Committee as a whole has the relevant financial
experience and competence the sector the Company operates in.
Risk management and internal control
The Board reviews the effectiveness of the internal control system
during the year under the auspices of the Audit Committee, as well as
regularly reviewing and evaluating the overall risk management system
in Air Astana. Further information on the principal risks and
uncertainties, and mitigation measures, is available on pages 76-80 of
this report. The Audit Committee acts in the interests of shareholders
and provides oversight support to the Board of Directors concerning the
effectiveness of the risk management, internal control and corporate
governance systems.
In 2024, the Company significantly enhanced its internal controls by
hiring a full-time internal controls expert and engaging external
consultants for project on enhancement of internal control system.
These additions have strengthened the Company’s ability to manage
risk effectively and uphold the integrity of its financial processes. The
Company remains committed to continuously testing, refining and
improving its controls to maintain the highest standards of transparency,
accountability and operational excellence.
Internal audit
Mission and functions
Air Astana’s IAS was created in December 2007 by a decision of the
Board of Directors. The IAS organises and carries out internal audit
engagements and reports directly to the Board of Directors.
Supervision of the IAS is carried out by the Audit Committee in
accordance with internal documents governing its activities.
The appointment and dismissal of the IAS Head and employees is
within the remit of the Board of Directors.
The purpose of IAS is to strengthen Air Astana’s ability to create,
protect and sustain value by providing the Board of Directors and the
CEO of Air Astana with independent, risk-based and objective
assurance, advice, insight and foresight.
Corporate Governance report Audit Committee report continued
Composition and attendance
Name Position Meetings attended
(total 14)
Keith Gaebel Committee Chair
Independent Non-Executive
Director
Janet Heckman Independent Non-Executive
Director
Yeldar
Abdrazakov
Independent Non-Executive
Director
AIR ASTANA GROUP Integrated Annual Report 2024
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AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
Audit process
The IAS has strengthened its professional team, continued to improve
its internal audit processes and to keep high quality of results of
performed internal audit engagements. The IAS adheres to an agile
approach in planning and performing internal audit engagements,
aiming to fulfil its responsibilities more effectively and efficiently. The
IAS uses a risk-based approach in selecting internal audit engagements
for the Annual Audit Plan and defining audit scope and audit procedures
for internal audit engagements. The IAS is guided by the detailed
Internal Audit Manual and other internal regulating documents that
comply with the Global Internal Audit Standards. The IAS employees
continually enhance their knowledge and skills as they believe that
their high professional level is one of the key factors behind the IAS’s
high-performing results.
The IAS conducted all internal audit engagements included into the
Annual Audit Plan for 2024. In total, throughout 2024, the IAS completed
17 internal audit engagements, including tasks related to two areas of
continuous monitoring and two Information Technology audits.
All performed internal audit engagements related to high priority areas,
and five of these were performed at the request of the management.
The IAS uses the internal audit management software TeamMate+ for
the entire audit process which helps to increase efficiency.
Compliance with the standards
In November 2022, the IAS successfully passed an external
independent assessment with a final result – ‘Fully conforms with the
Code of Ethics and the Definition of Internal Audit of the Institute of
Internal Auditors, as well as the requirements of the Standards by 100%.’
During 2024 the IAS undertook necessary steps to implement the new
requirements of the Global Internal Audit Standards, which became
effective in January 2025.
External audit
The Committee engaged regularly throughout the year with KPMG,
the Company’s external auditor, and worked with them to review and
approve the 2024 external audit plan and strategy, including scope,
approach and methodology. The Committee is also responsible for the
review of the performance and independence of the external auditor,
and as part of this review, considered the tenure of the audit partner,
the performance and effectiveness of the external audit, and the
confirmations from the external auditor that appropriate challenge
was given to the audit. Taking the above into account, the Committee
considers that the external auditor remained objective and independent.
KPMG was first appointed to audit the financial statements for the year
ended 31 December 2014 for a three-year period, following which, it was
agreed to maintain the engagement as the Company proceeded towards
IPO. The Company undertook an audit process during the pre-IPO period,
and KPMG remained the most suitable candidate. The current lead audit
partner, Mukhit Kossayev, has led the audit since 2021.
Fees for non-audit services for 2024 paid to the external auditor
amounted to USD 36,000. Fees for work undertaken by KPMG for both
audit and non-audit services during 2024 amounted to USD 547,000.
The Committee also assesses the independence and objectivity of the
external auditor through the assurances provided by the external
auditor on the independence and matters that may challenge their
professional judgement. KMPG confirmed that any identified threats
to their independence have been eliminated or reduced to an
acceptable level, including assurances that the engagement team and
others in the firm have complied with all relevant ethical
requirements regarding independence. To preserve objectivity and
independence, the Company does not purchase any consulting or
other services from the external auditor unless this is in compliance
with the Company’s policy for the procurement of non-audit services
of audit organisations. The policy also covers the approach to hiring
former external audit employees to avoid any conflict of interest and
to protect external auditor independence. This policy is available to
view on the Company’s website at airastana.com.
Priorities for 2025
The Audit Committee will continue to focus on maintaining the
integrity and quality of financial statements and ensuring that the
Company prepares its financial and business reports based on the
principles of transparency and accountability, completeness and
reliability. The Audit Committee will continue to strengthen the
Company’s internal control, risk management and compliance
systems, and will strive for a good information flow between all
committees to ensure governance standards and transparency is
maintained at the highest levels.
Corporate Governance report Audit Committee report continued
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126
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Corporate Governance report
Responsibility
statement
Other disclosures
►
Post-balance-sheet events: Note 31 of the financial
statement - Subsequent events states the following
– There were no events after the reporting date that
require separate disclosure
►
Branches: The Group, through various subsidiaries,
has established branches in Azerbajin, China, France,
Germany, Georgia, India, Kyrgistan, Russia, Tajikistan,
Turkey, UK, Ukraine and Uzbekistan in which the
business operates
►
Disclosure of information to auditors: The Directors
at the date of approval of the financial statements
confirm that, so far as they are aware, there is no
relevant audit information of which the Company’s
auditors are unaware, and that they have taken all
the steps they ought to have taken as Directors to
make themselves aware of any relevant audit
information and to establish that the Company’s
auditors are aware of that information
The Board of Directors, and each member of the Board of
Directors, confirm they recognise their responsibility for
preparing and approving the annual report and financial
statements in accordance with applicable laws and
regulations, and consider the annual report and financial
statements, taken as a whole, to be fair, balanced and
understandable, and to provide the information necessary for
shareholders to assess the Company’s position, performance,
business model and strategy.
Each member of the Board of Directors confirms that to the best
of their knowledge:
►
the Group financial statements, prepared in accordance with IFRS,
give a true and fair view of the assets, liabilities, financial position
and profit or loss of the Group
►
the Company financial statements, prepared in accordance with
IFRS, give a true and fair view of the assets, liabilities, financial
position and profit or loss of the Company
►
the Strategic Report, included in the Annual Report, includes a fair
review of the development and performance of the business and
the financial position of the Group and the Company, together with
a description of the principal risks and uncertainties they face
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AIR ASTANA GROUP Integrated Annual Report 2024
127
128
fulfilling our promisesfulfilling our promises
Financial
statements
Statement of management’s responsibilities 130
Independent auditors’ report 131
Consolidated statement of profit or loss 135
Consolidated statement of other comprehensive income 136
Consolidated statement of financial position 137
Consolidated statement of changes in equity 138
Consolidated statement of cash flows 139
Notes to the consolidated financial statements 140
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
129
AIR ASTANA GROUP Integrated Annual Report 2024
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
The management is responsible for the preparation of the consolidated financial statements that present fairly the consolidated financial position
of Joint Stock Company Air Astana and its subsidiary (the “Group”) as at 31 December 2024, and the results of its consolidated operations, cash
flows and changes in equity for the year then ended in compliance with IFRS Accounting Standards as issued by the International Accounting
Standards Board (“IFRS Accounting Standards”).
In preparing the consolidated financial statements, the management is responsible for:
►
properly selecting and applying accounting policies
►
presenting information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable
information
►
providing additional disclosures when compliance with the specific requirements in IFRS Accounting Standards are insufficient to enable users
to understand the impact of particular transactions, other events and conditions on the Group’s financial position and financial performance;
and
►
making an assessment of the Group’s ability to continue as a going concern
The management is also responsible for:
►
designing, implementing and maintaining an effective and sound system of internal controls throughout the Group
►
maintaining adequate accounting records that are sufficient to show and explain the Group’s transactions and disclose with reasonable
accuracy at any time the consolidated financial position of the Group, and which enable them to ensure that the consolidated financial
statements of the Group comply with IFRS Accounting Standards
►
maintaining statutory accounting records in compliance with the legislation of Kazakhstan and IFRS Accounting Standards
►
taking such steps as are reasonably available to them to safeguard the assets of the Group
►
preventing and detecting fraud and other irregularities
The consolidated financial statements for the year ended 31 December 2024 were authorised for issue on 14 March 2025 by the management
of the Group.
On behalf of the management of the Group:
PETER FOSTER
Chief Executive Officer
IBRAHIM CANLIEL
Chief Financial Officer
SAULE KHASSENOVA
Chief Accountant
Almaty, Republic of Kazakhstan
14 March 2025
Statement of management’s responsibilities
for the preparation and approval of the
consolidated financial statements
for the year ended 31 December 2024
AIR ASTANA GROUP Integrated Annual Report 2024
130
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Opinion
We have audited the consolidated financial statements of Joint Stock
Company Air Astana (the “Company”) and its subsidiary (the “Group”),
which comprise the consolidated statement of financial position as at
31 December 2024, the consolidated statements of profit or loss, other
comprehensive income, changes in equity and cash flows for the year
then ended, and notes, comprising material accounting policies and
other explanatory information.
In our opinion, the accompanying consolidated financial statements
present fairly, in all material respects, the consolidated financial
position of the Group as at 31 December 2024 and its consolidated
financial performance and its consolidated cash flows for the year
then ended in accordance with IFRS Accounting Standards as issued by
the International Accounting Standards Board (IFRS Accounting Standards).
Basis for opinion
We conducted our audit in accordance with International Standards on
Auditing (ISAs). Our responsibilities under those standards are further
described in the Auditors’ Responsibilities for the Audit of the
Consolidated Financial Statements section of our report. We are
independent of the Group in accordance with the International Ethics
Standards Board for Accountants International Code of Ethics for
Professional Accountants (including International Independence
Standards) (IESBA Code) together with the ethical requirements that
are relevant to our audit of the consolidated financial statements in
the Republic of Kazakhstan, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the IESBA
Code. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the consolidated
financial statements of the current period. These matters were
addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters.
Independent auditors’ report
To the shareholders of Joint Stock Company Air Astana
The recognition of the passenger revenue, including accounting for customer loyalty program provision
Please refer to Note 3, paragraph ‘Revenue’, Note 5, paragraph ‘Customer loyalty program’ in the consolidated financial statements and Notes 7, 22.
The key audit matter How the matter was addressed in our audit
The revenue of the Group is mainly represented by passenger
revenue which is recognised when the transportation services are
provided to customers.
In addition, the Group recognises contract liabilities for customer
loyalty programs in its consolidated financial statements that relate
to points granted to participants of the Nomad Club Programme.
Revenue is recognised when the points are redeemed by a
customer and the underlying performance obligation relating to the
redeemed points is fulfilled. The transaction price is allocated
between the transportation service and the award provided based
on their stand-alone selling prices.
Estimations, particularly as they relate to predicting customer
behaviours are prone to a wider range of possible outcomes for us to
consider.
The accounting for these loyalty programs involves significant
judgment and estimates, particularly for estimation of the deferred
revenue associated with the points awarded and the timing and
amount of revenue recognition for redeemed points. Total
passenger revenue for 2024 amounted to USD 1,246,044 thousand
and customer loyalty program provision as at 31 December 2024
amounted to USD 15,996 thousand.
The recognition of the passenger revenue, including the recognition
of contract liabilities for customer loyalty programs, involves a
significant risk of material misstatement and is, therefore, considered
as a key audit matter in our audit, since the estimates and assumptions
of the management have a significant effect on the recognition and
estimation of these items, which are significant in terms of the amount.
Our approach to address the matter included, among other, the following procedures:
►
Testing and evaluating design, implementation and operating effectiveness of internal
controls related to revenue recognition, specifically
•
Testing controls related to transfer of data between relevant IT systems that
management uses to recognize revenue
•
For the IT systems or processes that are outsourced to third party service providers,
assessing assurance reports with respect to design and operating effectiveness of
relevant controls
►
Evaluating the design and implementation, as well as testing the operating
effectiveness of key internal controls over the tracking and accounting of points
awarded and redeemed within IT systems that management uses to initially accrue
and subsequently redeem points, including controls over the estimation processes
for deferred revenue
►
Assessing the methodologies used by management to estimate the fair value of the
points awarded and the expected redemption rate
►
Assessing the reasonableness and supportableness of the assumptions used in
calculation of frequent flyer program liabilities
►
Reconciling points awarded and redeemed during the year to the underlying IT
systems. Assessing of the expected usage rate and stand-alone selling price of
points against. historical experience, and recent trends, analysing historical
redemption patterns and comparison with industry benchmarks
►
Testing, on a sample basis, passenger revenue transactions by inspecting the
supporting documents
►
Assessing the adequacy of the disclosures against the requirements of IFRS
Accounting Standards, including critical accounting judgments and key sources of
estimation uncertainty
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Independent auditors’ report continued
The recognition of provision for aircraft under lease agreements without transfer of title
Please refer to Note 3, paragraph ‘Provisions’ and Note 23 in the consolidated financial statements.
The key audit matter How the matter was addressed in our audit
For aircraft under lease agreements without transfer of title, the Group is
contractually committed to either return the aircraft in a specified condition
or to compensate the lessor based on the actual condition of the aircraft
and its major components upon return.
Provision is made for the expected cost associated with these contractual
return conditions.
In addition, the Group is obliged to perform regular scheduled maintenance
of aircraft under the terms of its lease agreements without transfer of title
and regulatory requirements relating to air safety.
At each reporting date, the estimation of the maintenance provision includes
a number of variable factors and assumptions, including the expected cost of
maintenance activities and the time it is expected to occur; the condition of
the aircraft; and the lifespan of components. Management has engaged an
expert to assist in estimating the timing and cost of expected engine
maintenance activities.
We have identified this as a key audit matter because of the inherent level
of management judgement required in estimating the amount of provision
and complex and subjective elements around these estimations.
In addition, the provision for aircraft under lease agreements without transfer
of title in the amount of USD 315,135 thousand is material to the consolidated
financial statements.
The following procedures were performed:
►
Assessing the key assumptions adopted by management in estimating
the provisions, as follows
•
Assessing the expected cost of maintenance activities against historical
actual costs incurred and existing maintenance agreements
•
Agreeing expected cost of maintenance activities and the time it is expected
to occur to supporting documentation
►
Testing the classification of current and non-current parts of the provisions
►
Assessing of the accuracy of management’s previous estimates and the
consistency of the provisions based on analysis of historical flight hours,
estimate of the cost of maintenance work to historic invoices
►
Inspecting the reports provided by the management’s expert and evaluating
the relevance and reasonableness of the expert’s findings and conclusions
►
Assessing the knowledge, skill, and ability of the management’s expert and
the expert’s relationship to the entity
►
Assessing the adequacy of the disclosures in the consolidated financial
statements against the requirements of IFRS Accounting Standards
Other information
Management is responsible for the other information. The other
information comprises the information included in the Annual Report,
but does not include the consolidated financial statements and our
auditors’ report thereon. The Annual Report is expected to be made
available to us after the date of this auditors’ report.
Our opinion on the consolidated financial statements does not cover
the other information and we will not express any form of assurance
conclusion thereon.
In connection with our audit of the consolidated financial statements,
our responsibility is to read the other information identified above
when it becomes available and, in doing so, consider whether the
other information is materially inconsistent with the consolidated
financial statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated.
Responsibilities of management and those
charged with governance for the consolidated
financial statements
Management is responsible for the preparation and fair presentation of
the consolidated financial statements in accordance with IFRS
Accounting Standards, and for such internal control as management
determines is necessary to enable the preparation of consolidated
financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated financial statements, management is
responsible for assessing the Group’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless management
either intends to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
Those charged with governance are responsible for overseeing the
Group’s financial reporting process.
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Independent auditors’ report continued
Auditors’ responsibilities for the audit of the
consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the
consolidated financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditors’
report that includes our opinion. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit conducted in accordance
with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on
the basis of these consolidated financial statements.
As part of an audit in accordance with ISAs, we exercise professional
judgment and maintain professional scepticism throughout the audit.
We also:
►
Identify and assess the risks of material misstatement of the
consolidated financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control
►
Obtain an understanding of internal control relevant to the audit
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the Group’s internal control
►
Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures
made by management
►
Conclude on the appropriateness of management’s use of the going
concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s ability to
continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our
auditors’ report to the related disclosures in the consolidated
financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditors’ report. However,
future events or conditions may cause the Group to cease to
continue as a going concern
►
Evaluate the overall presentation, structure and content of the
consolidated financial statements, including the disclosures, and
whether the consolidated financial statements represent the
underlying transactions and events in a manner that achieves fair
presentation
►
Plan and perform the Group audit to obtain sufficient appropriate
audit evidence regarding the financial information of the entities or
business units within the Group as a basis for forming an opinion
on the Group financial statements. We are responsible for the
direction, supervision and review of the audit work performed for
purposes of the Group audit. We remain solely responsible for our
audit opinion
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we
have complied with relevant ethical requirements regarding independence,
and communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable,
actions taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance,
we determine those matters that were of most significance in the
audit of the consolidated financial statements of the current period and
are therefore the key audit matters. We describe these matters in our
auditors’ report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such
communication.
The engagement partner on the audit resulting in this independent
auditors’ report is:
Mukhit Kossayev
Certified Auditor
of the Republic of Kazakhstan
Auditor’s Qualification Certificate
No. 558 of 24 December 2003
KPMG Audit LLC
State License to conduct audit #0000021
dated 6 December 2006 issued by the
Ministry of Finance of the Republic
ofKazakhstan
Sergey Dementyev
General Director of KPMG Audit LLC
acting on the basis of the Charter
14 March 2025
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’000 | USD | Notes | 2024 | 2023 |
| Revenue and other income | ||||
Passenger revenue | 7 | |||
Cargo and mail revenue | 7 | |||
Gain from sale and leaseback transaction | 7 | |||
Other income | 7 | |||
Total revenue and other income | ||||
| Operating expenses | ||||
Fuel and oil costs | ( | ( | ||
Employee and crew costs | 8 | ( | ( | |
Depreciation and amortisation | 12 | ( | ( | |
Handling, landing fees and route charges | 8 | ( | ( | |
Passenger service | 8 | ( | ( | |
Engineering and maintenance | 8 | ( | ( | |
Selling costs | 8 | ( | ( | |
Insurance | ( | ( | ||
Consultancy, legal and professional services | ( | ( | ||
IT and communication costs | ( | ( | ||
Aircraft lease costs | ( | ( | ||
Property and office costs | ( | ( | ||
Taxes | ( | ( | ||
Impairment loss on trade receivables | ( | ( | ||
Other operating costs | ( | ( | ||
Total operating expenses | ( | ( | ||
Operating profit | ||||
Finance income | 9 | |||
Finance costs | 9 | ( | ( | |
Foreign exchange loss, net | ( | ( | ||
Profit before tax | ||||
Income tax expense | 10 | ( | ( | |
Profit for the year | ||||
Basic and diluted earnings per share (in USD) 1 | 20 |
The consolidated statement of profit or loss is to be read in conjunction with the notes to, and forming part of, the consolidated financial
statements set out on pages 140-179.
1
Basic and diluted earnings per share have been retrospectively recalculated to reflect the updated number of shares issued.
On behalf of the Group’s management:
Peter Foster
Chief Executive Officer
Ibrahim Canliel
Chief Financial Officer
Saule Khassenova
Chief Accountant
Almaty, Republic of Kazakhstan
14 March 2025
Consolidated statement of profit or loss
for the year ended 31 December 2024
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’000 | USD | Notes | 2024 | 2023 |
Profit for the year | ||||
| Other comprehensive income to be reclassified into profit or loss in subsequent periods: | ||||
Cash flow hedges – effective portion of changes in fair value | 19 | ( | ||
Corporate income tax related to cash flow hedges – effective portion of changes in fair value | ( | |||
Realised net loss from cash flow hedging instruments | 25 | |||
Corporate income tax related to loss from hedging instruments | 25 | ( | ( | |
Other comprehensive income for the year, net of income tax | ||||
Total comprehensive income for the year |
The consolidated statement of other comprehensive income is to be read in conjunction with the notes to, and forming part of, the consolidated
financial statements set out on pages 140-179.
Consolidated statement of other
comprehensive income
for the year ended 31 December 2024
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| 31 December | 31 December | |||
’000 | USD | Notes | 2024 | 2023 |
| ASSETS | ||||
| Non-current assets | ||||
Property, plant and equipment | 11 | |||
Intangible assets | ||||
Prepayments | 15 | |||
Guarantee deposits | 13 | |||
Deferred tax assets | 10 | |||
Trade and other receivables | 16 | |||
| Current assets | ||||
Inventories | 14 | |||
Prepayments | 15 | |||
Income tax prepaid | ||||
Trade and other receivables | 16 | |||
Other taxes prepaid | 17 | |||
Guarantee deposits | 13 | |||
Cash and cash equivalents | 18 | |||
Other financial assets | 19 | |||
Total assets | ||||
| EQUITY AND LIABILITIES | ||||
| Equity | ||||
Share capital | 20 | |||
Functional currency transition reserve | ( | ( | ||
Other reserves | ||||
Treasury share | ( | |||
Reserve on hedging instruments, net of tax | ( | ( | ||
Retained earnings | ||||
Total equity | ||||
| Non-current liabilities | ||||
Loans | ||||
Lease liabilities | 25 | |||
Provision for aircraft maintenance | 23 | |||
Employee benefits | ||||
| Current liabilities | ||||
Loans | ||||
Lease liabilities | 25 | |||
Deferred revenue | 22 | |||
Provision for aircraft maintenance | 23 | |||
Trade and other payables | 24 | |||
Total liabilities | ||||
Total equity and liabilities | ||||
Book value per ordinary share (in USD) 1 | 20 |
The number of ordinary shares used in calculation as at 31 December 2024 and 31 December 2023 was 351,887,760 and 17,000 respectively.
The consolidated statement of financial position is to be read in conjunction with the notes to, and forming part of, the consolidated financial
statements set out on pages 140-179.
1
Disclosure of the book value per common share is not covered by IFRS and is disclosed upon request and in accordance with the rules of KASE.
Consolidated statement of financial position
as at 31 December 2024
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| Functional | ||||||||
| currency | Reserve on | |||||||
| Share | Treasury | Other | translation | hedging | Retained | |||
’000 | USD | capital | shares | reserves | reserve | instruments | earnings | Total equity |
At 1 January 2023 | ( | ( | ||||||
Profit for the year | ||||||||
Other comprehensive income: Realised loss on cash flow hedging instruments and effective | ||||||||
| portion of changes in fair value of fuel call | ||||||||
options, net of tax | ||||||||
Total comprehensive income for the year | ||||||||
Dividends declared | ( | ( | ||||||
Other | ||||||||
At 31 December 2023 | ( | ( | ||||||
At 1 January 2024 | ( | ( | ||||||
Profit for the year | ||||||||
Other comprehensive income: Realised loss on cash flow hedging instruments and effective | ||||||||
| portion of changes in fair value of fuel call | ||||||||
options, net of tax | ||||||||
Total comprehensive income for the year | ||||||||
Issue of shares | ||||||||
Issue costs | ( | ( | ||||||
Treasury shares | ( | ( | ||||||
Other changes | ||||||||
Equity-settled share-based programme | ||||||||
At 31 December 2024 | ( | ( | ( |
The consolidated statement of changes in equity is to be read in conjunction with the notes to, and forming part of, the consolidated financial
statements set out on pages 140-179.
Consolidated statement of changes in equity
for the year ended 31 December 2024
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’000 | USD | Notes | 2024 | 2023 |
| OPERATING ACTIVITIES: | ||||
Profit before tax | ||||
| Adjustments for: | ||||
Depreciation and amortisation of property, plant and equipment and intangible assets | 12 | |||
Gain on disposal of property, plant and equipment and other assets and from sales and leaseback transaction | 7 | ( | ( | |
Change in impairment allowance for trade receivables, prepayments, guarantee deposits and cash and cash equivalents | 13,15, 16,18 | ( | ( | |
Write-down of obsolete and slow-moving inventories | 14 | ( | ||
Change in vacation accrual | 24 | ( | ||
Accrual of provision for aircraft maintenance | 8 | |||
Change in customer loyalty program provision | 22 | |||
Foreign exchange loss, net | ||||
Finance income | 9 | ( | ( | |
Finance costs | 9 | |||
Gain from early return of aircraft | 25 | ( | ||
Equity-settled share-based payment | ||||
Operating cash flow before movements in working capital | ||||
Change in trade and other receivables | ( | ( | ||
Change in prepaid expenses and prepayments | ( | ( | ||
Change in inventories | ( | |||
Change in trade and other payables and provision for aircraft maintenance | ( | ( | ||
Change in deferred revenue | ||||
Change in other financial instruments | ( | |||
Cash generated from operations | ||||
Income tax paid | ( | ( | ||
Interest received | ||||
Net cash generated from operating activities | ||||
| INVESTING ACTIVITIES: | ||||
Purchase of property, plant and equipment | ( | ( | ||
Proceed from sale and leaseback transaction | ||||
Proceeds from disposal of property, plant and equipment | ||||
Purchase of intangible assets | ( | ( | ||
Guarantee deposits placed | ( | ( | ||
Guarantee deposits withdrawn | ||||
Net cash used in investing activities | ( | ( | ||
| FINANCING ACTIVITIES: | ||||
Repayment of lease liabilities | 25 | ( | ( | |
Interest paid | 25 | ( | ( | |
Repayment of borrowings and additional financing from sale and leaseback | 25 | ( | ( | |
Proceeds from borrowings and additional financing from sale and leaseback | 25 | |||
Repurchase of treasury shares | ( | |||
Proceeds from share issuance | 20 | |||
Dividends paid | 20 | ( | ||
Net cash used in financing activities | ( | ( | ||
Net increase in cash and cash equivalents | ||||
Effect of exchange rate changes on cash and cash equivalents held in foreign currencies | ( | ( | ||
Effects of movements in ECL on cash and cash equivalents | ( | ( | ||
Foreign currency translation | ( | |||
CASH AND CASH EQUIVALENTS, at the beginning of the year | ||||
Cash and cash equivalents, at the end of the year | 18 |
The consolidated statement of cash flows is to be read in conjunction with the notes to, and forming part of, the consolidated financial
statements set out on pages 140-179.
Consolidated statement of cash flows
for the year ended 31 December 2024
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AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
1. Nature of activities
Joint Stock Company Air Astana joint stock company (the
“Company”) as defined in the Civil Code of the Republic of Kazakhstan
The Company was established as a closed joint stock company on 14
September 2001 by Resolution of the Government of the Republic of
legislation introduced in 2003, the Parent Company was re-registered
as a joint stock company on 27 May 2005.
The Company has a subsidiary JSC “FlyArystan” (formerly JSC “Aviation
Company “Air Kazakhstan”) (hereinafter – the “Subsidiary”) which was
acquired in November 2019 by purchasing one hundred percent of the
shares and voting interests. Together the Company and the Subsidiary
are referred to as the “Group”.
The operations of Subsidiary commenced in October 2023. From
December 2023 to December 2024, JSC “FlyArystan” issued
additionally 3,780,000 shares in favour of the Company. The total
additional investment amounted to KZT 15,120,000 thousand (USD
32,268 thousand).
As at 31 December 2024 and 31 December 2023, the Group operated
57 and 49 turbojet aircrafts, respectively.
On 15 February 2024, the Company completed its initial public offering
(“IPO”), raising KZT 54,256,673 thousand (USD 121,111 thousand). The
Company listed simultaneously on three exchanges: Kazakhstan Stock
Exchange, Astana International Exchange, and London Stock Exchange.
In addition to the primary offering, existing shareholders JSC “National
Welfare Fund “Samruk-Kazyna”, and BAE Systems Kazakhstan Limited
both sold their shares (or GDRs representing shares), reducing their
shareholdings to 41% and 16.95%, respectively. Other shareholders
had less than 10% of shares post-IPO.
2. Basis of accounting
Notes to the consolidated financial
statements
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Notes to the consolidated financial statements continued
3. Material accounting policies
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AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
Notes to the consolidated financial statements continued
3. Material accounting policies continued
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Notes to the consolidated financial statements continued
3. Material accounting policies continued
Average rate | Reporting date spot-rate | ||||
| 31 December | 31 December | ||||
USD | 2024 | 2023 | 2024 | 2023 | |
1,000 | Tenge (KZT) | 2.13 | 2.19 | 1.9 | 2.20 |
Euro (EUR) | 1.08 | 1.08 | 1.04 | 1.10 | |
British Pound (GBP) | 1.28 | 1.24 | 1.25 | 1.27 |
Average rate | Reporting date spot-rate | |||
| 31 December | 31 December | |||
KZT | 2024 | 2023 | 2024 | 2023 |
US Dollar (USD) | 469.44 | 456.31 | 525.11 | 454.56 |
Euro (EUR) | 507.86 | 493.33 | 546.74 | 502.24 |
British Pound (GBP) | 600.27 | 567.3 | 658.91 | 577.47 |
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AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
Notes to the consolidated financial statements continued
3. Material accounting policies continued
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Notes to the consolidated financial statements continued
3. Material accounting policies continued
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AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
Notes to the consolidated financial statements continued
3. Material accounting policies continued
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Notes to the consolidated financial statements continued
3. Material accounting policies continued
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AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
Notes to the consolidated financial statements continued
3. Material accounting policies continued
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Notes to the consolidated financial statements continued
3. Material accounting policies continued
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AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
3. Material accounting policies continued
Notes to the consolidated financial statements continued
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Notes to the consolidated financial statements continued
3. Material accounting policies continued
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AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
Notes to the consolidated financial statements continued
3. Material accounting policies continued
4. Application of new and revised international
financial reporting standards
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Notes to the consolidated financial statements continued
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AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
Notes to the consolidated financial statements continued
6. Segment reporting
The Group’s management makes decisions regarding resource
allocation to segments based upon the results and the activities of its
ful-service brand Air Astana and low-cost brand FlyArystan segments
for the purpose of segments’ performance evaluation. The Group’s
main activities can be summarised as follows:
Air Astana
The brand’s aviation activities consist of mainly domestic and
international passenger and cargo air transportation as a full service
airline.
FlyArystan
The brand’s aviation activities consist of mainly domestic and
international passenger and cargo air transportation as a low-cost
service airline.
The Group amended the treatment of intercompany leases costs
between Air Astana and FlyArystan in its segment reporting to
consistently apply IFRS 16 Leases in both operating segments.
As a result of this change, the Group has recognised the depreciation
of right-of-use assets arising from these intercompany lease
transactions with FlyArystan. These transactions are treated as
intersegment transactions and are reflected in elimination section of
the segment report. The Group does not conduct separate analyses of
the financial position for each segment.
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Notes to the consolidated financial statements continued
6. Segment reporting continued
Operating results for the years ended 31 December 2024 and 2023:
’000 | USD | 2024 | 2024 | Inter-group | |
| Consolidated Profit or Loss statement | Air Astana | FlyArystan | elimination | Total | |
| Revenue and other income | |||||
Passenger revenue | 917,187 | 328,867 | (10) | 1,246,044 | |
Lease | 69,867 | 21,531 | (91,398) | - | |
Cargo and mail revenue | 23,891 | 2,412 | - | 26,303 | |
Gain from sale and leaseback transaction | 12,063 | 12,953 | - | 25,016 | |
Other income | 11,351 | 1,734 | (1,300) | 11,785 | |
Total revenue and other income | 1,034,359 | 367,497 | (92,708) | 1,309,148 | |
| Operating expenses | |||||
Fuel and oil costs | (220,897) | (84,286) | - | (305,183) | |
Employee and crew costs | (171,666) | (55,969) | 976 | (226,659) | |
| Depreciation and amortisation | (157,903) | (61,133) | 29,865 | (189,171) | |
Passenger service | (102,857) | (15,820) | - | (118,677) | |
Engineering and maintenance | (97,572) | (57,600) | 37,298 | (117,874) | |
Handling, landing fees and route charges | (92,985) | (27,504) | 4 | (120,485) | |
Selling costs | (41,058) | (3,124) | 2 | (44,180) | |
Aircraft operating lease costs | (18,843) | (4,016) | 17,643 | (5,216) | |
Insurance | (8,870) | (3,931) | - | (12,801) | |
Consultancy, legal and professional services | (7,753) | (859) | 200 | (8,412) | |
IT and communication costs | (4,640) | (2,191) | - | (6,831) | |
Taxes | (4,303) | (58) | - | (4,361) | |
Property and office cost | (4,185) | (490) | - | (4,675) | |
Other operating costs | (12,509) | (2,108) | - | (14,617) | |
Total operating expenses | (946,041) | (319,089) | 85,988 | (1,179,142) | |
Operating profit | 88,318 | 48,408 | (6,720) | 130,006 |
’000 | USD | 2023 | 2023 | Inter-group | |
| Consolidated Profit or Loss statement | Air Astana | FlyArystan | elimination | Total | |
| Revenue and other income | |||||
Passenger revenue | 869,171 | 274,425 | - | 1,143,596 | |
Lease | 87,277 | 673 | (87,950) | - | |
Cargo and mail revenue | 20,773 | 1,746 | - | 22,519 | |
Other income | 7,449 | 950 | - | 8,399 | |
Total revenue and other income | 984,670 | 277,794 | (87,950) | 1,174,514 | |
| Operating expenses | |||||
Fuel and oil costs | (209,195) | (69,977) | - | (279,172) | |
Employee and crew costs | (148,667) | (44,400) | - | (193,067) | |
Depreciation and amortisation | (159,148) | (43,648) | 40,785 | (162,011) | |
Passenger service | (86,901) | (14,235) | - | (101,136) | |
Engineering and maintenance | (99,663) | (43,522) | 35,005 | (108,180) | |
Handling, landing fees and route charges | (82,480) | (23,247) | - | (105,727) | |
Selling costs | (36,740) | (3,691) | - | (40,431) | |
Aircraft lease costs | (1,995) | (1,844) | 1,622 | (2,217) | |
Insurance | (7,723) | (3,258) | - | (10,981) | |
Consultancy, legal and professional services | (5,608) | (121) | - | (5,729) | |
IT and communication costs | (4,925) | (1,613) | - | (6,538) | |
Taxes | (3,920) | - | - | (3,920) | |
Property and office costs | (3,498) | (367) | - | (3,865) | |
Other operating costs | (14,334) | (1,225) | - | (15,559) | |
Total operating expenses | (864,797) | (251,148) | 77,412 | (1,038,533) | |
Operating profit | 119,873 | 26,646 | (10,538) | 135,981 |
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Notes to the consolidated financial statements continued
’000 | USD | 2024 | 2023 |
| Passenger revenue | |||
| Scheduled passenger flights | |||
including: | 1,151,415 | 1,092,287 | |
Fuel surcharge | 96,636 | 109,786 | |
Airport services | 59,984 | 57,185 | |
Excess baggage | 6,000 | 6,638 | |
Charter flights | 94,629 | 51,309 | |
1,246,044 | 1,143,596 |
’000 | USD | 2024 | 2023 |
| Cargo and mail revenue | |||
Cargo – Regular | 23,937 | 20,469 | |
Mail | 2,366 | 2,050 | |
26,303 | 22,519 |
’000 | USD | 2024 | 2023 |
| Other income | |||
Incidental income | 7,582 | 1,546 | |
Income from ground services | 1,738 | 1,522 | |
Gain on disposal of property, plant and equipment and other assets | 717 | 3,499 | |
Other | 1,748 | 1,832 | |
11,785 | 8,399 |
| Operating segments | |||||
| 2024 | |||||
| 2024 | 2024 | Intergroup | |||
’000 | USD | Air Astana | FlyArystan | elimination | Total |
Asia and Middle East | 374,954 | 19,917 | - | 394,871 | |
Europe | 250,152 | 17,576 | - | 267,728 | |
Domestic | 241,222 | 264,970 | (10) | 506,182 | |
CIS | 74,750 | 28,816 | - | 103,566 | |
Total Passenger and Cargo and mail revenue | 941,078 | 331,279 | (10) | 1,272,347 |
| Operating segments | |||||
| 2023 | |||||
| 2023 | 2023 | Intergroup | |||
’000 | USD | Air Astana | FlyArystan | elimination | Total |
Asia and Middle East | 302,053 | 17,784 | - | 319,837 | |
Europe | 264,741 | 22,697 | - | 287,438 | |
Domestic | 241,306 | 205,753 | - | 447,059 | |
CIS | 81,844 | 29,937 | - | 111,781 | |
Total Passenger and Cargo and mail revenue | 889,944 | 276,171 | - | 1,166,115 |
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’000 | USD | 2024 | 2023 |
| Employee and crew costs | |||
Wages and salaries | 174,886 | 146,734 | |
Accommodation and allowance | 19,744 | 17,256 | |
Social tax | 15,492 | 13,528 | |
Training | 5,770 | 6,662 | |
Other | 10,767 | 8,887 | |
226,659 | 193,067 |
’000 | USD | 2024 | 2023 |
| Engineering and maintenance | |||
Maintenance, including components | 76,958 | 79,639 | |
Maintenance – variable lease payments | 20,062 | 12,734 | |
Spare parts | 17,041 | 13,142 | |
Technical inspection | 3,813 | 2,665 | |
117,874 | 108,180 |
’000 | USD | 2024 | 2023 |
| Handling, landing fees and route charges | |||
Handling charge | 53,532 | 45,211 | |
Aero navigation | 43,089 | 37,593 | |
Landing fees | 21,638 | 20,941 | |
Other | 2,226 | 1,982 | |
120,485 | 105,727 |
’000 | USD | 2024 | 2023 |
| Passenger service | |||
Airport charges | 54,614 | 48,378 | |
Catering | 38,601 | 31,027 | |
Security | 6,248 | 5,090 | |
Inflight entertainment | 5,724 | 5,913 | |
Other | 13,490 | 10,728 | |
118,677 | 101,136 |
’000 | USD | 2024 | 2023 |
| Selling costs | |||
Reservation costs | 24,646 | 22,140 | |
Commissions | 10,253 | 9,152 | |
Advertising | 8,546 | 8,341 | |
Other | 735 | 798 | |
44,180 | 40,431 |
’000 | USD | 2024 | 2023 |
| Finance income | |||
Interest income on bank deposits | 21,414 | 14,071 | |
Other | 665 | 735 | |
22,079 | 14,806 | ||
’000 | USD | 2024 | 2023 |
| Finance costs | |||
Interest expense on lease liabilities (Note 25) | 54,102 | 44,578 | |
Unwinding of the discount of provision for aircraft maintenance (Note 23) | 9,772 | 3,362 | |
Interest expense on bank loans (Note 25) | 517 | 1,415 | |
Other | 265 | 537 | |
64,656 | 49,892 |
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Notes to the consolidated financial statements continued
’000 | USD | 2024 | 2023 |
| Current income tax | |||
Current income tax | (32,391) | (41,137) | |
Adjustment recognised in the current year in relation to the current tax of prior years | 2,762 | 1,920 | |
(29,629) | (39,217) | ||
| Deferred tax expense | |||
Deferred income tax benefit | 15,719 | 20,830 | |
15,719 | 20,830 | ||
(13,910) | (18,387) |
’000 | USD | 2024 | 2023 |
| Deferred tax assets | |||
Lease liabilities | 182,814 | 132,305 | |
Provision for aircraft maintenance | 64,061 | 50,758 | |
Trade receivables | 3,583 | 5,219 | |
Trade and other payables | 3,508 | 3,674 | |
Tax loss carried forward | - | 41 | |
Other | 1,118 | 1,047 | |
Total deferred tax assets | 255,084 | 193,044 | |
| Deferred tax liabilities | |||
Right of use assets | (167,526) | (120,772) | |
Difference in depreciable value of property, plant and equipment and intangible assets | (31,953) | (31,309) | |
Inventories | (4,428) | (2,621) | |
Prepaid expenses | (2,410) | (477) | |
Other | (164) | (825) | |
Total deferred tax liabilities | (206,481) | (156,004) | |
Net deferred tax assets | 48,603 | 37,040 |
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10. Income tax expense continued
’000 | USD | 2024 | 2023 |
Profit before tax | 66,686 | 87,092 | |
Corporate income tax, % | 20% | 20% | |
Income tax at statutory rate | (13,337) | (17,418) | |
USD forex effect | 138 | 1,997 | |
Tax effect of non-deductible expenses | (882) | (2,966) | |
Other | 171 | - | |
Income tax expense | (13,910) | (18,387) |
11. Property, plant and equipment
| Equipment | ||||||||
| Office | Buildings | Technical | in transit and | |||||
| Rotable | and training | premises | equipment | construction | ||||
’000 | USD | spare parts | equipment | and land | and vehicles | Aircraft | in progress | Total |
| Cost | ||||||||
At 1 January 2023 | 102,892 | 11,987 | 38,324 | 2,682 | 1,265,967 | 10,179 | 1,432,031 | |
Additions | 18,565 | 3,774 | 10,821 | 251 | 163,833 | 2,736 | 199,980 | |
Disposals | (5,279) | (638) | (3,167) | (65) | (14,455) | - | (23,604) | |
Other transfers | - | 8,312 | 2,106 | - | - | (10,418) | - | |
At 31 December 2023 | 116,178 | 23,435 | 48,084 | 2,868 | 1,415,345 | 2,497 | 1,608,407 | |
Additions | 46,904 | 3,846 | 9,770 | 4,147 | 345,593 | 4,612 | 414,872 | |
Disposals | (14,967) | (594) | (1,384) | (123) | (53,548) | - | (70,616) | |
Other transfers | (9,532) | - | - | 9,027 | 505 | - | - | |
At 31 December 2024 | 138,583 | 26,687 | 56,470 | 15,919 | 1,707,895 | 7,109 | 1,952,663 |
| Equipment | ||||||||
| Office | Buildings | Technical | in transit and | |||||
| Rotable | and training | premises | equipment | construction | ||||
’000 | USD | spare parts | equipment | and land | and vehicles | Aircraft | in progress | Total |
At 1 January 2023 | 39,485 | 7,595 | 14,051 | 1,534 | 551,781 | - | 614,446 | |
Charge for the year | 12,093 | 1,755 | 4,017 | 186 | 143,151 | - | 161,202 | |
Disposals | (3,034) | (624) | (2,635) | (49) | (14,219) | - | (20,561) | |
At 31 December 2023 | 48,544 | 8,726 | 15,433 | 1,671 | 680,713 | - | 755,087 | |
Charge for the year | 12,637 | 2,551 | 4,966 | 944 | 167,575 | - | 188,673 | |
Disposals | (1,758) | (574) | (1,345) | (81) | (50,623) | - | (54,381) | |
Other transfers | (3,919) | - | - | 3,919 | - | - | - | |
At 31 December 2024 | 55,504 | 10,703 | 19,054 | 6,453 | 797,665 | - | 889,379 | |
| Net book value | ||||||||
At 31 December 2023 | 67,634 | 14,709 | 32,651 | 1,197 | 734,632 | 2,497 | 853,320 | |
At 31 December 2024 | 83,079 | 15,984 | 37,416 | 9,466 | 910,230 | 7,109 | 1,063,284 |
In determining the Group’s geographical information, assets, which consist principally of aircraft and ground equipment are mainly registered in
the Republic of Kazakhstan. Accordingly, there is no reasonable basis for allocating the assets to geographical segments.
In 2024 the Group made full repayments on five finance lease obligations, resulting in the transfer of title for these aircraft in amount of USD
66,562 thousand. Consequently, the right-of-use assets related to these aircraft are now classified as owned property. As at 31 December 2024
net book value of these owned aircraft is USD 66,256 thousand.
As at 31 December 2024 technical equipment and vehicles includes highloader and five de-icing trucks with the net book value USD 9,716
thousand, which were purchased in 2023 and 2024.
Rotable spare parts include aircraft modification costs.
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Notes to the consolidated financial statements continued
11 Property, plant and equipment continued
Right of use assets, included in property, plant and equipment, are as follows:
| Buildings | |||||
| Rotable | premises | ||||
’000 | USD | spare parts | and land | Aircraft | Total |
| Cost | |||||
At 1 January 2023 | 23,874 | 14,290 | 1,265,967 | 1,304,131 | |
Additions and modifications | 27 | 10,117 | 163,833 | 173,977 | |
Disposals | (902) | (3,167) | (14,455) | (18,524) | |
At 31 December 2023 | 22,999 | 21,240 | 1,415,345 | 1,459,584 | |
At 1 January 2024 | 22,999 | 21,240 | 1,415,345 | 1,459,584 | |
Additions and modifications | 23,568 | 8,413 | 345,807 | 377,788 | |
Disposals | (574) | (1,384) | (53,544) | (55,502) | |
Transfer of title | - | - | (142,422) | (142,422) | |
At 31 December 2024 | 45,993 | 28,269 | 1,565,186 | 1,639,448 | |
| Accumulated depreciation | |||||
At 1 January 2023 | 11,185 | 10,514 | 551,781 | 573,480 | |
Charge for the period | 2,961 | 3,396 | 143,151 | 149,508 | |
Disposals | (883) | (2,622) | (14,219) | (17,724) | |
At 31 December 2023 | 13,263 | 11,288 | 680,713 | 705,264 | |
At 1 January 2024 | 13,263 | 11,288 | 680,713 | 705,264 | |
Charge for the period | 2,921 | 4,335 | 165,927 | 173,183 | |
Disposals | (554) | (1,345) | (50,569) | (52,468) | |
Transfer of title | - | - | (75,860) | (75,860) | |
At 31 December 2024 | 15,630 | 14,278 | 720,211 | 750,119 | |
| Net book value | |||||
At 31 December 2023 | 9,736 | 9,952 | 734,632 | 754,320 | |
At 31 December 2024 | 30,363 | 13,991 | 844,975 | 889,329 |
The Group’s obligations under leases for Aircraft have a carrying amount of USD 888,661 thousand (2023: USD 718,893 thousand) (Note 25). The
total amount of Aircraft Under Lease as at 31 December 2024 includes 19 Airbus aircraft under leases related to the FlyArystan brand with a net
book value of USD 340,451 thousand (2023: 18 Airbus aircraft with a net book value of USD 271,447 thousand).
As per the loan agreement with JSC Halyk Bank of Kazakhstan, the Technical Center (Hangar) in Astana, with a carrying amount of USD 18,028
thousand, is currently pledged in favor of JSC Halyk Bank of Kazakhstan.
The cost of fully depreciated items as at 31 December 2024 is USD 24,090 thousand (2023: USD 22,250 thousand).
12. Depreciation and amortisation
’000 | USD | 2024 | 2023 |
Depreciation of property, plant and equipment (Note 11) | 188,673 | 161,202 | |
Amortisation of intangible assets | 498 | 809 | |
Total | 189,171 | 162,011 |
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13. Guarantee deposits
| 31 December | 31 December | ||
’000 | USD | 2024 | 2023 |
| Non-current | |||
Guarantee deposits for leased aircraft | 36,742 | 32,233 | |
Other guarantee deposits | 2,356 | 1,599 | |
Impairment allowances | (403) | (530) | |
38,695 | 33,302 | ||
| Current | |||
Other guarantee deposits | 1,970 | 1,580 | |
Guarantee deposits for leased aircraft | 1,269 | 400 | |
Impairment allowances | - | (1) | |
3,239 | 1,979 | ||
41,934 | 35,281 |
Guarantee deposits are interest-free and are recorded at amortised cost using an average market yield of 3.06% per annum (2023: 2.97%).
Guarantee deposits for leased aircraft comprise security deposits required by the lease agreements as security for future lease payments to be
made by the Group. Guarantee deposits are denominated primarily in US Dollars. The Group assesses credit risk for such deposits as low mainly
because almost all lessors are rated from AA to BBB in accordance with S&P Global Ratings credit quality grades.
For those lessors who are not credit rated by international rating agencies, management calculates the expected credit loss based on the
assumption that such lessors are rated at CCC by S&P Global Ratings. The amount of deposits with such lessors as at 31 December 2024 is USD
2,535 thousand (2023: USD 3,732 thousand).
As at 31 December 2024, the Group had guarantees and stand-by letters of credit in JSC Halyk Bank of Kazakhstan in the amount of USD 10,043
thousand, USD 13,430 thousand in JSC Altyn Bank and USD 19,122 thousand in JSC Citibank Kazakhstan. As at 31 December 2023, the Group had
guarantees and stand-by letters of credit in JSC Halyk Bank of Kazakhstan in the amount of USD 10,168 thousand, USD 13,396 thousand in JSC
Altyn Bank and USD 41,979 thousand in JSC Citibank Kazakhstan.
Guarantee deposits for leased aircraft and maintenance liabilities are receivable as follows:
| 31 December | 31 December | ||
’000 | USD | 2024 | 2023 |
Within one year | 1,269 | 400 | |
After one year but not more than five years | 9,367 | 11,456 | |
More than five years | 27,413 | 20,804 | |
38,049 | 32,660 | ||
Fair value adjustment | (38) | (27) | |
38,011 | 32,633 |
The main driver for increases in guarantee deposits for leased aircraft in 2024 was the additional 20 aircraft committed for delivery in 2024-2028.
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Notes to the consolidated financial statements continued
14. Inventories
| 31 December | 31 December | ||
’000 | USD | 2024 | 2023 |
Spare parts | 44,874 | 41,548 | |
Fuel | 8,147 | 14,733 | |
Goods in transit | 4,369 | 4,238 | |
Crockery | 4,189 | 4,136 | |
Promotional materials | 2,640 | 2,586 | |
De-icing liquid | 1,790 | 447 | |
Uniforms | 1,420 | 1,825 | |
Other | 4,290 | 3,272 | |
71,719 | 72,785 | ||
Less: cumulative write-down for obsolete and slow-moving inventories | (5,590) | (5,237) | |
66,129 | 67,548 |
The movements in the cumulative write-down for obsolete and slow-moving inventories were as follows for the years ended 31 December:
’000 | USD | 2024 | 2023 |
Cumulative write-down for obsolete and slow-moving inventories at the beginning of the year | (5,237) | (5,858) | |
Write-down for the year | (1,145) | (206) | |
Reversal of previous write-down for the year | 792 | 827 | |
Cumulative write-down for obsolete and slow-moving inventories at the end of the year | (5,590) | (5,237) |
15. Prepayments
| 31 December | 31 December | ||
’000 | USD | 2024 | 2023 |
| Non-current | |||
Advances for services | 10,366 | 9,146 | |
Prepayments for long-term assets | 9,225 | 9,305 | |
19,591 | 18,451 | ||
| Current | |||
Advances for goods | 16,489 | 10,934 | |
Advances for services | 11,074 | 11,506 | |
Prepayments of leases without transfer of legal title | 2,870 | 2,569 | |
30,433 | 25,009 | ||
Less: impairment allowance for prepayments | (143) | (184) | |
30,290 | 24,825 |
As at 31 December 2024, prepayments for long-term assets include prepayments to Boeing as predelivery payment for three aircraft (Note 28).
The movements in the impairment allowance for the years ended 31 December 2024 and 31 December 2023:
’000 | USD | 2024 | 2023 |
At the beginning of the year | (184) | (218) | |
Accrued during the year | (5) | (74) | |
Written-off against previously created allowance | 46 | 98 | |
Reversed during the year | - | 10 | |
Impairment allowance at the end of the year | (143) | (184) |
The impairment allowance includes advance payments made by the Group to suppliers which are currently subject to legal claims for recovery
due to the suppliers’ inability to complete the transactions.
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| 31 December | 31 December | ||
’000 | USD | 2024 | 2023 |
| Non-current | |||
Other financial assets | 44,357 | 45,258 | |
Other receivables | 630 | 1,343 | |
44,987 | 46,601 | ||
Less: impairment allowance | (44,357) | (45,258) | |
630 | 1,343 | ||
| Current | |||
Trade receivables | 20,054 | 23,135 | |
Other receivables | 1,629 | 1,354 | |
21,683 | 24,489 | ||
Less: impairment allowance | (882) | (964) | |
20,801 | 23,525 |
17. Other taxes prepaid
| 31 December | 31 December | ||
’000 | USD | 2024 | 2023 |
Value-added tax recoverable | 13,273 | 9,722 | |
Other taxes prepaid | 519 | 525 | |
13,792 | 10,247 |
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Notes to the consolidated financial statements continued
18. Cash and cash equivalents
| 31 December | 31 December | ||
’000 | USD | 2024 | 2023 |
Term deposits with an initial maturity of less than 3 months | 335,904 | 178,313 | |
Current accounts with foreign banks | 130,083 | 85,661 | |
Current accounts with local banks | 13,077 | 9,578 | |
US Treasury Bills with initial maturity of less than 3 months | 9,008 | - | |
Cash in hand | 77 | 111 | |
Accrued interest | 565 | 353 | |
488,714 | 274,016 | ||
Impairment allowances | (12) | (10) | |
488,702 | 274,006 |
19. Other financial assets
The Group signed agreements and entered into transactions with various financial institutions to manage the risk of significant changes in
aviation fuel prices. In accordance with the terms, financial institutions agreed to compensate the Group for the excess between the actual price
of crude oil and the ceiling price specified in the agreements. The fair value of the fuel call options has been determined using а valuation
model with market observable parameters.
Loss on fuel options of USD 2,178 thousand was added to fuel costs for the year ended 31 December 2024. Fuel costs for the year ended 31
December 2023 include gain of USD 2,510 thousand.
| Call option | ||
’000 | USD | (purchase) |
At 1 January 2023 | 1,660 | |
Acquisition | 3,225 | |
Gain included in “fuel and oil costs” | (2,509) | |
Payments on exercised contracts | (587) | |
Gain included in OCI – Net change in fair value | (1,026) | |
At 31 December 2023 | 763 | |
At 1 January 2024 | 763 | |
Acquisition | 1,988 | |
Loss included in “fuel and oil costs” | (2,178) | |
Loss included in “finance cost” as ineffective part | (58) | |
Payments on exercised contracts | (645) | |
Loss included in OCI – Net change in fair value | 432 | |
At 31 December 2024 | 302 |
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20. Equity
’000 | USD | 2024 | 2023 |
Profit for the year | 52,776 | 68,705 | |
Number of ordinary shares | 348,878,155 | 306,000,000 | |
Earnings per share – basic and diluted (USD) | 0.151 | 0.225 |
| 31 December | 31 December | |
| 2024 | 2023 | |
Total assets | 1,813,075 | 1,362,444 |
Less: intangible assets | (6,018) | (2,836) |
Less: total liabilities | (1,418,545) | (1,149,085) |
Net Asset Value | 388,512 | 210,523 |
Number of ordinary shares | 351,887,760 | 17,000 |
Book value per ordinary share (in USD) | 1.104 | 12,383.706 |
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Notes to the consolidated financial statements continued
21. Share-based payments
The Group operates share-based payment programs as part of the total remuneration package provided to employees. These programmes
include share award plans in which shares are provided to employees at no cost, subject to the Group achieving specified performance targets.
All the programmes imply equity settlement.
IPO Award
The IPO Award plan is granted to key management personnel. The IPO Award plan vests after one year from the IPO date, subject to continued service, with
no further performance conditions. The fair value of IPO Award is based on the market value of the share at the reporting date, KZT 802.37 (USD 1.53).
Long-Term Incentive Plan
The Long-Term Incentive Plan (LTIP) is a recurring plan granted to the key management personnel, following the announcement of full-year results
of each third IPO anniversary. The LTIP award is subject to the achievement of performance conditions: 60% of the award is based on a range of
net profit margin targets for the 2026 year-end, and 40% of the award is based on the Company’s total shareholder return (“TSR”) performance
against a peer group of other airlines. The total award amount is determined by the fulfilment of these performance conditions. The plan
terminates on the tenth anniversary. The fair value of LTIP is based on the market value of the share at the reporting date, KZT 802.37 (USD 1.53).
The fair value of awards granted within LTIP was determined at reporting date using a binomial model (The Cox-Ross-Rubinstein binomial
model) for TSR and Monte Carlo model for EPS with the following assumptions:
Inputs into the models | Long-Term Incentive Plan |
Market share price | 1.53 |
Expected volatility | 3.57% |
Expected dividends | dividend payment is not expected |
Risk-free interest rate (based on US Treasury bonds) | 4.39% |
The expected volatility of Group’s share return was determined as the median volatility of peer companies’ share returns. Based on the model,
as at 31 December 2024, the weighted average performance conditions level for EPS and TSR is 71.84%.
Employee Share Ownership Plan
The Employee Share Ownership Plan (ESOP) is granted to eligible employees who had worked for the company for at least one year prior to the
IPO. The ESOP will vest one year after the IPO with no further performance conditions except for continuous service.
The fair value of awards granted within the ESOP is based on the market value of the share at the reporting date, which is KZT 802.37 (USD 1.53).
Total number of awards granted
| Employee | |
| Number of awards | Incentive Plan |
Outstanding at 1 January 2024 | - |
Granted | 6,189,494 |
Forfeited | (472,196) |
Outstanding at 31 December 2024 | 5,717,298 |
The fair value of share rights at reporting date granted to employees is recognised as an expense, within “Employee and crew costs” in profit or
loss, over the vesting periods (1 and 3 years). The corresponding entry is reflected directly in equity.
Total expense recognised in 2024 in respect to equity-settled share-based payment was USD 7,636 thousand before income tax of USD 1,527 thousand.
22. Deferred revenue
| 31 December | 31 December | ||
’000 | USD | 2024 | 2023 |
Unearned passenger revenue | 73,805 | 72,440 | |
Customer loyalty program provision | 15,996 | 11,928 | |
89,801 | 84,368 |
The amount of revenue recognised in the current period that was included in the opening deferred revenue balance is USD 84,368 thousand.
Unearned transportation revenue represents the value of sold but unused passenger tickets the validity period of which has not expired,
excluding recognised passenger revenue in respect of the percentage of tickets sold that are expected not to be used or refunded.
Deferred revenue attributable to the customer loyalty programme refers to the Group’s Nomad Club programme.
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Notes to the consolidated financial statements continued
| 31 December | 31 December | ||
’000 | USD | 2024 | 2023 |
Engines | 268,911 | 210,975 | |
D-check | 22,206 | 22,486 | |
Provision for redelivery of aircraft | 6,830 | 5,864 | |
Landing gear | 6,328 | 6,141 | |
C-check | 6,572 | 2,994 | |
Auxiliary Power unit | 4,288 | 5,328 | |
315,135 | 253,788 |
’000 | USD | 2024 | 2023 |
At 1 January | 253,788 | 189,643 | |
Accrued during the year (Note 8) | 96,536 | 88,793 | |
Used during the year | (45,593) | (25,047) | |
Reversed during the year (Note 8) | (1,237) | (2,963) | |
Recognised in property, plant and equipment | 1,869 | - | |
Unwinding of the discount (Note 9) | 9,772 | 3,362 | |
At 31 December | 315,135 | 253,788 |
| 31 December | 31 December | ||
’000 | USD | 2024 | 2023 |
Within one year | 25,269 | 105,170 | |
During the second year | 105,778 | 62,411 | |
During the third year | 60,658 | 59,412 | |
After the third year | 123,430 | 26,795 | |
Total provision for aircraft maintenance | 315,135 | 253,788 | |
Less: current portion | 25,269 | 105,170 | |
Non-current portion | 289,866 | 148,618 |
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Notes to the consolidated financial statements continued
| 31 December | 31 December | ||
’000 | USD | 2024 | 2023 |
Trade payables | 74,759 | 62,929 | |
Advances received | 11,314 | 8,570 | |
Taxes payable | 9,832 | 1,637 | |
Deposits received from agents | 9,102 | 7,250 | |
Accrued bonuses | 8,283 | 1,637 | |
Due to employees | 6,744 | 6,860 | |
Vacation pay accrual | 2,181 | 1,005 | |
Pension contribution | 1,214 | 1,014 | |
Other | 124 | 99 | |
123,553 | 91,001 |
| 31 December | 31 December | ||
’000 | USD | 2024 | 2023 |
Tenge | 63,156 | 43,945 | |
US Dollar | 48,406 | 37,505 | |
Euro | 6,105 | 4,395 | |
British Pound | 773 | 958 | |
Other | 5,113 | 4,198 | |
123,553 | 91,001 |
| Minimum | Present value of | ||||
| lease payments | minimum lease payments | ||||
| 31 December | 31 December | 31 December | 31 December | ||
’000 | USD | 2024 | 2023 | 2024 | 2023 |
Not later than one year | 226,588 | 214,585 | 171,886 | 174,997 | |
Later than one year and not later than five years | 675,020 | 512,484 | 557,647 | 431,400 | |
Later than five years | 170,589 | 121,453 | 159,128 | 112,496 | |
1,072,197 | 848,522 | 888,661 | 718,893 | ||
Less: future finance charges | (183,536) | (129,629) | - | - | |
Present value of minimum lease payments | 888,661 | 718,893 | 888,661 | 718,893 | |
| Included in the consolidated financial statements as: | |||||
- current portion of lease obligations | - | - | 171,886 | 174,997 | |
- non-current portion of lease obligations | - | - | 716,775 | 543,896 | |
- | - | 888,661 | 718,893 | ||
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Notes to the consolidated financial statements continued
25. Lease liabilities continued
| Lease | ||||
’000 | USD | Loans | liabilities | Total |
Balance as at 1 January 2024 | 412 | 718,893 | 719,305 | |
Repayment of borrowings | (38,016) | - | (38,016) | |
Proceed from borrowings | 37,600 | - | 37,600 | |
Additional financing from sale and leaseback | 593 | - | 593 | |
Repayment of lease liabilities | - | (190,331) | (190,331) | |
| Repayment of additional financing | (426) | - | (426) | |
Interest paid | (520) | (53,911) | (54,431) | |
Total changes from financing cash flows | (769) | (244,242) | (245,011) | |
Effect of changes in foreign exchange rates | 417 | (1,175) | (758) | |
| Other changes | ||||
Additional adjustment – new leases and modifications | 367,045 | 367,045 | ||
Non-cash settlement due to netting with guarantee deposits | (3,087) | (3,087) | ||
Gain from early return of aircraft | (2,875) | (2,875) | ||
Interest expense (Note 9) | 517 | 54,102 | 54,619 | |
Total other changes | 517 | 415,185 | 415,702 | |
Balance as at 31 December 2024 | 577 | 888,661 | 889,238 |
| Lease | ||||
’000 | USD | Loans | liabilities | Total |
Balance as at 1 January 2023 | 12,096 | 732,804 | 744,900 | |
Repayment of borrowings | (46,250) | - | (46,250) | |
Proceed from borrowings | 35,000 | - | 35,000 | |
Repayment of lease liabilities | - | (173,302) | (173,302) | |
Repayment of additional financing | (390) | - | (390) | |
Interest paid | (1,459) | (41,258) | (42,717) | |
Total changes from financing cash flows | (13,099) | (214,560) | (227,659) | |
Effect of changes in foreign exchange rates | - | 81 | 81 | |
Other changes | - | - | - | |
Additional adjustment – new leases and modifications | - | 160,574 | 160,574 | |
Non-cash settlement due to netting with guarantee deposits | - | (4,584) | (4,584) | |
Interest expense (Note 9) | 1,415 | 44,578 | 45,993 | |
Total other changes | 1,415 | 200,568 | 201,983 | |
Balance as at 31 December 2023 | 412 | 718,893 | 719,305 |
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AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
Notes to the consolidated financial statements continued
’000 | USD | Note | 2024 | 2023 |
Reversal of impairment loss on trade and other receivables and prepayments | 15, 16 | 35 | 212 | |
(Accrual)/reversal of impairment loss on guarantee deposits | 13 | 128 | (256) | |
Accrual of impairment loss on cash and cash equivalents | 18 | (2) | (1) | |
161 | (45) |
| 31 December | 31 December | ||
’000 | USD | 2024 | 2023 |
Default banks | 44,357 | 45,258 | |
Trade receivables | 20,054 | 23,135 | |
Amounts due from employees | 1,976 | 2,697 | |
Receivable from lessors | 283 | - | |
Total gross carrying amount | 66,670 | 71,090 | |
Impairment allowance | (45,239) | (46,222) | |
Total net carrying amount | 21,431 | 24,868 |
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Notes to the consolidated financial statements continued
26. Financial instruments continued
31 December 2024 | 31 December 2023 | ||||
| Gross carrying | Loss | Gross carrying | Loss | ||
’000 | USD | amount | allowance | amount | allowance |
Current (not past due) | 13,383 | (19) | 22,344 | (8) | |
1–30 days past due | 6,305 | - | 390 | - | |
31-90 days past due | 29 | - | 62 | - | |
More than 90 days past due | 337 | (337) | 339 | (339) | |
20,054 | (356) | 23,135 | (347) |
’000 | USD | 2024 | 2023 |
Balance at 1 January | 46,222 | 46,521 | |
Accrual of impairment allowance | 1,646 | 840 | |
Write-off of impairment allowance | - | (97) | |
Foreign currency difference | (943) | 74 | |
Reversal of impairment allowance | (1,686) | (1,116) | |
Balance at 31 December | 45,239 | 46,222 |
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AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
Notes to the consolidated financial statements continued
26. Financial instruments continued
| 31 December | 31 December | ||
’000 | USD | 2024 | 2023 |
| Credit rating | |||
BBB- to AAA | 37,085 | 28,901 | |
C to CCC+ | 2,535 | 3,732 | |
Without ratings | 2,717 | 3,179 | |
Gross carrying amounts (amortised cost before impairment) | 42,337 | 35,812 | |
Impairment allowance | (403) | (531) | |
Total net carrying amount | 41,934 | 35,281 |
’000 | USD | 2024 | 2023 |
Balance at 1 January | (531) | (275) | |
Net re-measurement of loss allowance | 128 | (256) | |
Balance at 31 December | (403) | (531) |
31 December 2024 | 31 December 2023 | ||||||
| Gross carrying | 12 month | Gross carrying | 12 month | ||||
’000 | USD | amount | ECL | Carrying amount | amount | ECL | Carrying amount |
| Credit rating | |||||||
BBB- to A+ | 474,122 | (12) | 474,110 | 257,562 | (9) | 257,553 | |
B+ to BB+ | 14,592 | - | 14,592 | 16,343 | (1) | 16,342 | |
Without ratings | - | - | - | 111 | - | 111 | |
488,714 | (12) | 488,702 | 274,016 | (10) | 274,006 |
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Notes to the consolidated financial statements continued
26. Financial instruments continued
Notes | 31 December 2024 | 31 December 2023 | ||||
’000 | USD | Tenge | Euro | Tenge | Euro | |
| Assets | ||||||
Other taxes prepaid | 17 | 13,792 | - | 10,247 | - | |
Trade and other receivables | 16 | 14,463 | 1,156 | 16,008 | 1,757 | |
Income tax prepaid | 12,999 | - | 13,259 | - | ||
Cash and cash equivalents | 18 | 12,879 | 5,978 | 3,869 | 1,686 | |
Guarantee deposits | 323 | 295 | 341 | 313 | ||
Total | 54,456 | 7,429 | 43,724 | 3,756 | ||
| Liabilities | ||||||
Trade and other payables | 24 | 63,156 | 6,105 | 43,945 | 4,395 | |
Lease liabilities | 7,897 | - | 4,832 | - | ||
Total | 71,053 | 6,105 | 48,777 | 4,395 | ||
Net position | (16,597) | 1,324 | (5,053) | (639) |
Weakening of US Dollar | Strengthening of US Dollar | ||||
’000 | USD | Tenge | Euro | Tenge | Euro |
31 December 2024 | 10% | 10% | 10% | 10% | |
(Loss)/profit | (1,328) | 106 | 1,328 | (106) |
Weakening of US Dollar | Strengthening of US Dollar | ||||
’000 | USD | Tenge | Euro | Tenge | Euro |
31 December 2023 | 10% | 10% | (10%) | (10%) | |
Profit/(loss) | (404) | (51) | 404 | 51 |
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AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
Notes to the consolidated financial statements continued
26. Financial instruments continued
| 3 months to | Over | |||||
’000 | USD | Up to 3 months | 1 year | 1-5 years | 5 years | Total |
| 31 December 2024 | ||||||
| Financial assets | ||||||
Trade and other receivables | 19,377 | 1,424 | 630 | - | 21,431 | |
Guarantee deposits | 616 | 2,623 | 10,536 | 28,197 | 41,972 | |
Cash and cash equivalents | 488,702 | - | - | - | 488,702 | |
| Financial liabilities | ||||||
| Non-interest bearing | ||||||
Trade and other payables | 77,064 | 9,102 | - | - | 86,166 | |
| Fixed rate | ||||||
Loans | 24 | 72 | 478 | 183 | 757 | |
Lease liabilities | 58,312 | 168,276 | 675,020 | 170,589 | 1,072,197 | |
| 3 months to | Over | |||||
’000 | USD | Up to 3 months | 1 year | 1-5 years | 5 years | Total |
| 31 December 2023 | ||||||
| Financial assets | ||||||
Trade and other receivables | 22,778 | 747 | 1,343 | - | 24,868 | |
Guarantee deposits | 384 | 1,595 | 12,230 | 21,099 | 35,308 | |
Cash and cash equivalents | 274,006 | - | - | - | 274,006 | |
| Financial liabilities | ||||||
| Non-interest bearing | ||||||
Trade and other payables | 73,544 | 7,250 | - | - | 80,794 | |
| Fixed rate | ||||||
Loans | 106 | 317 | - | - | 423 | |
Lease liabilities | 53,282 | 161,303 | 512,484 | 121,453 | 848,522 | |
AIR ASTANA GROUP Integrated Annual Report 2024
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Notes to the consolidated financial statements continued
26. Financial instruments continued
AIR ASTANA GROUP Integrated Annual Report 2024
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AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
Notes to the consolidated financial statements continued
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Notes to the consolidated financial statements continued
28. Commitments and contingencies
| 31 December | 31 December | ||
’000 | USD | 2024 | 2023 |
Within one year | 29,084 | 22,166 | |
After one year but not more than five years | 772,349 | 511,496 | |
More than five years | 941,398 | 852,470 | |
1,742,831 | 1,386,132 |
Insurance
Aviation insurance
Air Astana puts substantial attention in contracting insurance coverage for its aircraft operations and hence hedges aviation risks with major
international insurance markets (e.g. Lloyd’s) with a high rating of financial stability through the services of an international reputable broker.
Types of insurance coverage are stated below:
►
Aviation Hull, Total Loss Only and Spares All risks and Airline Liability including Passenger Liability
►
Aircraft Hull and Spare Engine Deductible
►
Aviation Hull and Spares ‘War and Allied Perils
►
Aviation War, Hi-Jacking and Other Perils Excess Liability
Non–aviation Insurance
Apart from aviation insurance coverage the Group constantly purchases non-aviation insurance policies to reduce the financial risk of damage to
property and general liability, as well as covering employees from accidents and medical expenses, as follows:
►
Medical insurance of employees
►
Directors, Officers and Corporate liability insurance
►
Property insurance
►
Comprehensive vehicle insurance
►
Compulsory insurance of employee from accidents during execution of labour (service) duties
►
Pilot’s loss of license insurance
►
Insurance of goods at warehouse
►
Cyber insurance
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AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
Notes to the consolidated financial statements continued
28. Commitments and contingencies continued
’000 | USD | 2024 | 2023 |
Wages and salaries | 7,599 | 7,323 | |
Share-based payment | 1,571 | - | |
Social tax | 865 | 671 | |
Termination benefits | 318 | - | |
10,353 | 7,994 |
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Notes to the consolidated financial statements continued
29. Related party transactions continued
2024 | 2023 | ||||
’000 | USD | Transaction | Outstanding | Transaction | Outstanding |
| Services received | value | balance | value | balance | |
State-owned companies | 107,654 | 2,173 | 149,402 | 1,332 | |
Shareholders and their subsidiaries | 75,285 | (4,479) | 67,765 | (1,598) | |
182,939 | (2,306) | 217,167 | (266) |
’000 | USD | 2024 | 2023 | |
| Transaction | Outstanding | Transaction | Outstanding | |
| Services provided by the Group | value | balance | value | balance |
Shareholders and their subsidiaries | 1,335 | 189 | 1,229 | 1,018 |
State-owned companies | - | - | - | - |
1,335 | 189 | 1,229 | 1,018 |
’000 | USD | 2024 | 2023 |
Audit fee | 547 | 515 | |
Non-audit fees related to IPO | - | 444 | |
Other non-audit fees | 36 | 90 | |
583 | 1,049 |
31. Subsequent events
There were no events after the reporting date that require separate disclosure.
32. Approval of the consolidated financial statements
The consolidated financial statements were approved by the management of the Group and authorised for issue on 14 March 2024.
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AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
Additional
information
Major transactions 182
Economic performance 182
GRI content index 183
Independent practitioner’s assurance report 186
TCFD 188
Glossary 196
180
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AIR ASTANA GROUP Integrated Annual Report 2024
XX
AIR ASTANA Integrated Annual Report 2024
Additional
information
181
AIR ASTANA GROUP Integrated Annual Report 2024
AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
Additional information
Major transactions Economic performance
Through its core activities and socio-economic investments, the Group
contributes to the local and national economies wherever it operates.
Recognising its duties as a corporate citizen, it operates its business in a
responsible, efficient and profitable manner and is committed to
supporting sustainable development through:
►
Enhancing efficiency and productivity in its core business activities
►
Paying taxes
►
Creating both direct and indirect employment opportunities
►
Supporting local economies by sourcing from local suppliers and
developing supply chains
Comprehensive details regarding the economic performance of Air
Astana Group are available in the audited financial statements of this
Integrated Report, on pages 130 to 140.
Direct economic value generated and distributed data is reported only
for Kazakhstan, as it represents our significant market based on
operational scale and impact; no other country, region, or market
meets the criteria for separate reporting.
USD ‘000 2024 2023 2022
Direct economic value generated 1,331,227 1,189,320 1,039,377
Revenue 1,309,148 1,174,514 1,032,382
Economic value distributed 1,074,145 978,384 827,813
Operating cash costs 756,600 679,396 597,677
Employee wages and benefits 226,659 193,067 148,907
Payments to providers of capital 54,619 62,769 38,495
Payment to government 33,990 43,137 42,650
Community investments 2,277 15 84
Economic value retained 257,082 210,936 211,564
This year, the Group has enhanced the calculation of direct economic value generated and
distributed by refining the classification of cash costs and including income tax in the ‘taxes
paid’ component. These improvements reflect our ongoing commitment to increasing the
accuracy and transparency of our reporting. As a result, figures from previous years have
been recalculated to ensure consistency with the updated methodology.
Agreements on transfer of rights and obligations under the Airbus
A320neo Family Fleet Management Programme for maintenance of
PW1100G engines between International Aero Engines, LLC, FlyArystan
JSC (as a new party accepting part of the rights and obligations) and Air
Astana JSC (as a party transferring part of the rights and obligations).
Acquisition of seven (7) Airbus A321neo LR aircraft on operating lease
with deliveries from 2026 from ALC Clover Ireland Limited.
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Economic performance
Additional information
GRI content index
The Air Astana Group has reported in alignment with the GRI Standards for the period from 1 January 2024 to 31 December 2024.
GRI standard/disclosure Location of disclosures/reasons for omission
GRI 2: General Disclosures 2021
2-1 Organisational details
•
Name of the organisation Cover of the Annual Report 2024
•
Ownership and legal form Notes to the consolidated financial statements, pages 140-179
•
Location of headquarters Almaty, Kazakhstan
•
Location of operations At a glance, pages 11-19
2-2 Entities included in the organisation’s sustainabilityreporting Air Astana Group
2-3 Reporting period, frequency andcontactpoint
•
Reporting period for financials 1 January 2024 – 31 December 2024
•
Reporting period for sustainability data 1 January 2024 – 31 December 2024
•
Publication date April 2025 (Annual)
•
Contact point for questions regarding the report Corporate.governance@airastana.com
Sustainability.issues@airastana.com
2-4 Restatements of information The Company has not performed restatement of the information
2-5 External assurance Independent practitioner’s assurance report, page 186
2-6 Activities, value chain and other business relationships At a glance, pages 11-19; Business model, pages 32-33; Stakeholder engagement and
priorities, pages 38-44; Sustainability, page 46
2-7 Employees Sustainability, pages 63-66
2-9 Governance structure and composition Sustainability, page 48; Corporate Governance report, pages 98-127
2-10 Nomination and selection of the highest governancebody Corporate Governance report, pages 98-127
2-11 Chair of the highest governance body Corporate Governance report, pages 98-127
2-12 Role of the highest governance body in overseeing the
management of impacts
Corporate Governance report, pages 98-127
2-13 Delegation of responsibility for managing impacts Sustainability, page 48; Corporate Governance report, pages 98-127
2-14 Role of the highest governance body in
sustainabilityreporting
Sustainability, page 48
2-15 Conflicts of interest Corporate Governance report, pages 98-127
Policy for Prevention of Conflicts of Interest
2-16 Communication of critical concerns Sustainability, pages 50
2-17 Collective knowledge of the highest governancebody Sustainability, page 48
2-18 Evaluation of the performance of the highest
governancebody
Corporate Governance report, pages 98-127
2-19 Remuneration policies Corporate Governance report, pages 98-127
2-20 Process to determine remuneration Corporate Governance report, pages 98-127
2-22 Statement on sustainable development strategy Sustainability, pages 46-47
2-23 Policy commitments Sustainability, pages 49-51
2-24 Embedding policy commitments Sustainability, pages 49-51
2-25 Processes to remediate negative impacts Sustainability, pages 49-51
2-26 Mechanisms for seeking advice and raising concerns Sustainability, pages 49-51
2-27 Compliance with laws and regulations Sustainability, page 58
2-28 Membership associations International Air Transport Association (IATA), Association of Asia Pacific Airlines
(AAPA), IATA Clearing House, Flight Safety Foundation, Airline Passenger Experience
Association (APEX), International Society of Air Safety Investigators (ISASI)
2-29 Approach to stakeholder engagement Stakeholder engagement and priorities, pages 38-44
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AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
GRI standard/disclosure Location of disclosures/reasons for omission
GRI 3: Material Topics 2021
3-1 Process to determine material topics Sustainability section, page 49
3-2 List of material topics Sustainability section, page 51
3-3 Management of material topics Throughout the annual report – see individual indicators for further information
Strategy Strategy, pages 34-35
Ethics and compliance Sustainability, pages 49-51
Corporate Governance Covered in GRI 2-9
Stakeholder engagement Covered in GRI 2-29
Economic performance (GRI 201: Economic performance2016)
201-1 Direct economic value generated and distributed Additional information, page 182
201-2 Financial implications and other risks and opportunities
due to climate change
Sustainability, pages 188-195
Risk Management, page 74
201-4 Financial assistance received from government No financial assistance has been received from government since the launch ofAirAstana
Procurement practices (GRI 204: Procurement practices 2016)
204-1 Proportion of spending on local suppliers Sustainability, page 71
Anti-corruption (GRI 205: Anti-corruption 2016)
205-1 Operations assessed for risks related to corruption Sustainability, page 50
Principle risks and uncertainties, page 80
205-2 Communication and training about anti-corruption policies
and procedures
Sustainability, pages 49-50
205-3 Confirmed incidents of corruption and actions taken Sustainability, page 51
(d) Not applicable, since no public legal cases regarding corruption brought against the
Group or its employees during the reporting period
Aviation safety management systems Sustainability, pages 61-62
Energy (GRI 302: Energy 2016)
302-1 Energy consumption within the organisation Sustainability, page 56
(a) The Group has assessed its fuel consumption from non-renewable sources; however,
this information is not disclosed due to strategic considerations
(c) (3. 4). Not applicable, since there were no cooling and steam consumption.
(d) Not applicable, as the Group does not sell electricity, heating, cooling, or steam
302-4 Reduction of energy consumption Sustainability, page 56
Emissions (GRI 305: Emissions 2016)
305-1 Direct (Scope 1) GHG emissions Sustainability, page 56
(c) Not applicable, as the Group does not generate biogenic CO₂ emissions.
(d) Not applicable, as the Group has not established a base year. Emissions
performance is measured against a long-term decarbonization trajectory targeting
net-zero by 2050, rather than a fixed historical baseline
305-4 GHG emissions intensity Sustainability, page 56
305-5 Reduction of GHG emissions Sustainability, page 56
305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other
significant air emissions
Sustainability, page 56
Additional information GRI content index continued
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AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
XX
AIR ASTANA Integrated Annual Report 2024
GRI standard/disclosure Location of disclosures/reasons for omission
GRI 3: Material Topics 2021 continued
Waste management (GRI 306: Waste 2020)
306-2 Management of significant waste-related impacts Sustainability, page 57
306-5 General waste by type and disposal methods Sustainability, page 57
(b) (c) Not applicable as the Group uses different approach for hazardous and
non-hazardous waste disposal
Environmental compliance Sustainability, page 58
Employment (GRI 401: Employment 2016)
401-1 New employee hires and employee turnover Sustainability, page 64
401-2 Benefits provided to full-time employees that are notprovided
to temporary or part-time employees
Sustainability, page 65
401-3 Parental leave Sustainability, page 64
Occupational health and safety (GRI 403: Occupational health and safety 2018)
403-1 Occupational health and safety management system Sustainability, pages 59-62
403-2 Hazard identification, risk assessment, and
incidentinvestigation
Sustainability, pages 59-60
403-3 Occupational health services Sustainability, pages 59-60
403-4 Worker participation, consultation, and communication on
occupational health and safety
Sustainability, pages 59-60
403-5 Worker training on occupational health and safety Sustainability, pages 59-60
403-6 Promotion of worker health Sustainability, pages 59-60
403-9 Work-related injuries Sustainability, pages 59-60
(b) (f) Not applicable, as workers who are not employees are not covered by
the Occupational Health and Safety system and not controlled by the Group
Training and development (GRI 404: Training and education 2016)
404-1 Average hours of training per year per employee Sustainability, page 67
404-2 Programs for upgrading employee skills and transition
assistance programmes
Sustainability, pages 67-70
404-3 Percentage of employees receiving regular performance and
career development reviews
All employees receive annual appraisal as well
as career development review
406-1 Incidents of discrimination and corrective actionstaken Sustainability, page 65
Customer privacy (GRI 418: Customer privacy 2016)
418-1 Substantiated complaints concerning breaches ofcustomer
privacy and losses of customer data
Sustainability, page 51
Innovation and digitalisation Operating review, page 51
Service quality Operating review, pages 82-92
Passenger turnover Operating review, pages 82-92
On-time flight performance Operating review, pages 82-92
Fleet technological improvements Operating review, pages 82-92
Additional information GRI content index continued
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AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
Additional information
Independent practitioner’s limited assurance
report on Air Astana JSC’s Selected
consolidated sustainability information
To the Board of Directors of Air Astana JSC
Limited assurance conclusion
We have conducted a limited assurance engagement on the selected
consolidated sustainability information of Air Astana JSC (hereinafter
the “Company”) and its subsidiary (hereinafter - the “Group”) that is
disclosed in the Annual Report and is summarised in the Appendix
to this report (hereinafter - the “Selected consolidated sustainability
information” and the “Annual Report” respectively) as at 31 December
2024 and for the year then ended.
Based on the procedures we have performed and the evidence we
have obtained, nothing has come to our attention that causes us to
believe that the Selected consolidated sustainability information is not
prepared, in all material respects, in accordance with the GRI
Sustainability Reporting Standards published by the Global Reporting
Initiative (GRI) (hereinafter - the “GRI Standards”).
Basis for conclusion
We conducted our limited assurance engagement in accordance with
International Standard on Assurance Engagements (ISAE) 3000
(Revised), Assurance engagements other than audits or reviews of
historical financial information (“ISAE 3000 (Revised)”), issued by the
International Auditing and Assurance Standards Board.
We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our conclusion. Our responsibilities
under this standard are further described in the Practitioner’s
responsibilities section of our report.
Our independence and quality management
We have complied with the independence and other ethical
requirements of the International Code of Ethics for Professional
Accountants (including International Independence Standards) issued
by the International Ethics Standards Board for Accountants (IESBA
Code), which is founded on fundamental principles of integrity,
objectivity, professional competence and due care, confidentiality and
professional behaviour.
The firm applies International Standard on Quality Management 1,
which requires the firm to design, implement and operate a system of
quality management including policies or procedures regarding
compliance with ethical requirements, professional standards and
applicable legal and regulatory requirements.
Responsibilities for the Selected consolidated
sustainability information
Management of the Company is responsible for:
►
The preparation of the Selected consolidated sustainability
information in accordance with GRI Standards;
►
Designing, implementing and maintaining such internal control as
Management of the Company determines is necessary to enable
the preparation of the Selected consolidated sustainability
information, in accordance with GRI Standards, that is free from
material misstatement, whether due to fraud or error; and
►
The selection and application of appropriate sustainability reporting
methods and making assumptions and estimates that are
reasonable in the circumstances.
Board of Directors are responsible for overseeing the Group’s
sustainability reporting process.
Inherent limitations in preparing the Selected
consolidated sustainability information
Under the GRI Standards there is a range of different, but acceptable,
measurement and reporting techniques. The techniques can result in
materially different reporting outcomes that may affect comparability
with other organizations. The Selected consolidated sustainability
information should therefore be read in conjunction with the
methodology used by Management of the Company as described in
the Annual Report, and for which the Company is solely responsible.
Practitioner’s responsibilities
Our responsibility is to plan and perform the assurance engagement
to obtain limited assurance about whether the Selected consolidated
sustainability information is free from material misstatement, whether
due to fraud or error, and to issue a limited assurance report that
includes our conclusion. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence decisions of users taken on
the basis of the Selected consolidated sustainability information.
As part of a limited assurance engagement in accordance with ISAE
3000 (Revised) we exercise professional judgement and maintain
professional scepticism throughout the engagement. We also:
►
Determine the suitability in the circumstances of the Group’s use
of GRI Standards as the basis for the preparation of the Selected
consolidated sustainability information.
►
Perform risk assessment procedures, including obtaining an
understanding of internal control relevant to the engagement, to
identify where material misstatements are likely to arise, whether
due to fraud or error, but not for the purpose of providing a
conclusion on the effectiveness of the Group’s internal control.
►
Design and perform procedures responsive to where material
misstatements are likely to arise in the Selected consolidated
sustainability information. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
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Additional information Independent practitioner’s limited assurance report continued
Summary of the work performed
A limited assurance engagement involves performing procedures
to obtain evidence about the Selected consolidated sustainability
information. The procedures in a limited assurance engagement
vary in nature and timing from, and are less in extent than for, a
reasonable assurance engagement. Consequently, the level of
assurance obtained in a limited assurance engagement is substantially
lower than the assurance that would have been obtained had a
reasonable assurance engagement been performed.
The nature, timing and extent of procedures selected depend on
professional judgement, including the identification of where material
misstatements are likely to arise in the Selected consolidated
sustainability information, whether due to fraud or error.
In conducting our limited assurance engagement, we:
►
Obtained an understanding of the Group’s reporting processes
relevant to the preparation of its Selected consolidated
sustainability information;
►
Performed inquires of relevant personnel on the Selected
consolidated sustainability information;
►
Conducted limited substantive testing on a sample basis on a
Selected consolidated sustainability information to verify that the
data have been properly calculated, recorded, compared and
disclosed.
Restriction on distribution and use
Our report has been prepared solely for the Board of Directors of the
Company in accordance with the agreement between us, to assist the
Management of the Company in reporting on the Group’s sustainability
performance and activities and in responding to their governance
responsibilities by obtaining an independent limited assurance report in
connection with the Selected consolidated sustainability information.
The Selected consolidated sustainability information therefore may not
be suitable, and is not to be used, for any other purpose.
We permit this report to be disclosed in the Annual Report, which will
be published on the Group’s website.
The maintenance and integrity of the Group’s website is the
responsibility of Management of the Company; the work carried out
by us does not involve consideration of these matters and,
accordingly, we accept no responsibility for any changes that may
have occurred to the reported Selected consolidated sustainability
information when presented on the Group’s website.
To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company for our work or this
report except where the respective terms are expressly agreed in
writing and our prior consent in writing is obtained.
28 April 2025
Almaty, Kazakhstan
Appendix to the Independent practitioner’s limited assurance report
28 April 2025
The Selected consolidated sustainability information for the year ended 31 December 2024 and for the year then ended disclosed pages 50-71,
80, 182 of the Annual Report and prepared in accordance with the GRI Standards and subject to limited assurance procedures are set out below:
GRI Standard ReportedPerformance (selected consolidated sustainability information) Pages
201-1 Direct economic value generated and distributed p. 182
204-1 Proportion of spending on local suppliers p. 71
205-1 Operations assessed for risks related to corruption p. 50, 80
205-3 Confirmed incidents of corruption and actions taken p. 51
302-1 Energy consumption within the organization p. 56
305-1 Direct (Scope 1) GHG emissions p. 56
305-4 GHG emissions intensity p. 56
305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions p. 56
306-5 Waste directed to disposal p. 57
401-1 New employee hires and employee turnover p. 64
401-3 Parental leave p. 64-65
403-9 Work-related injuries p. 60
404-1 Average hours of training per year per employee p. 67
406-1 Incidents of discrimination and corrective actions taken p. 65
418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data p. 51
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AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
Additional information
Task Force on Climate-related Financial
Disclosures (TCFD)
GOVERNANCE
Disclose the organisation’s governance around climate-related risks and opportunities.
TCFD recommendation Progress to date
(a) Describe the Board’s
oversight of climate-
related risks and
opportunities
The Air Astana Group recognises the critical role of robust governance in managing climate-related risks and
opportunities. Since 2022 we have continuously enhanced our governance framework to ensure climate considerations
are effectively identified, assessed and integrated within the broader strategy and approach to decision-making. The
Board is regularly informed about climate-related risks and opportunities (CRRO). This is achieved through reporting
mechanism, including quarterly updates on CRRO developments.
Sustainability and strategic resilience remain one of the Group’s key priorities. The Board of Directors holds primary
responsibility for overseeing climate-related risks and opportunities and for developing a strategic response. This
includes setting clear strategies and targets, endorsing climate-related policies and initiatives, monitoring and reporting
on associated risks and opportunities, implementing robust risk management practices, and actively engaging
stakeholders to align with evolving environmental expectations.
The Audit Committee is entrusted with ensuring the effectiveness of the Group’s risk management framework.
Additionally, the Risk Committee, acting as an advisory body to the CEO, conducts preliminary assessments of risk
management issues, including climate-related risks. The Audit Committee and the Board of Directors receive quarterly
updates on risk management activities, with details outlined in the Risk Management section of this Integrated Report
(page 74).
The Board of Directors is accountable for the Group’s sustainable development strategy, with the ESG Committee
overseeing its implementation. The ESG Committee collaborates closely with other Board Committees on interrelated
matters. This includes collaboration with the Audit Committee to ensure the effectiveness of the Group’s risk
management framework to manage risks related to climate. It also includes collaboration with the Strategic Planning
Committee to ensure that decisions relating to climate mitigation such as fuel and CO
2
efficiency are considered in
procurement decisions. For example, this is reflected in the procurement of next-generation aircraft with enhanced fuel
efficiency and lower emissions to align with the Group’s sustainability objectives.
(b) Describe management’s
role in assessing and
managing climate-
related risks and
opportunities
The active engagement of management in assessing and addressing climate-related risks is essential to the Group’s
operations. By implementing proactive measures to mitigate these risks and seize emerging opportunities, the Group
strengthens its resilience and ensures sustainable growth in an increasingly complex global environment.
The CEO holds primary responsibility for overseeing the Group’s sustainable development and climate governance. In
close collaboration with the senior management team, the CEO leads efforts to identify, evaluate, and manage
climate-related risks effectively and to coordinate a resilience response. Supporting these initiatives, the Risk
Committee serves as an advisory body to the CEO, playing a crucial role in risk identification, assessment, monitoring,
and reporting.
Together, the Risk Committee and the senior management team develop and implement targeted actions to manage
climate-related risks, ensuring they are integrated into the Group’s broader strategic objectives. This is supported by
regular management reviews, quarterly Board reporting, and the incorporation of climate risks into the Group’s overall
risk assessment framework.
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STRATEGY
Disclose the actual and potential impacts of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial
planning where such information is material.
TCFD recommendation Progress to date
(a) Describe the climate-related
risks and opportunities the
organisation has identified over
the short, medium and long term
Air Astana Group defines the time horizons for climate-related risks and opportunities as follows:
Short-term: 0-1 year – aligned with the budget
Medium-term: 2-5 years – aligned with the business plan
Long-term: 6-25 years – aligned with the net-zero target by 2050 and the useful economic life of fleet vehicles.
The following risks and opportunities have been identified over the short-, medium- and long-term time
horizons:
TRANSITION RISKS
Air Astana Group is exposed to regulatory changes to reduce emissions, specifically carbon regulation and
regulation relating to the use of sustainable fuels.
Regulatory: Carbon regulation
Air Astana Group is primarily exposed to carbon regulation through the Carbon Offsetting and Reduction
Scheme for International Aviation (CORSIA), as Kazakhstan is a participant in the scheme. Under CORSIA, the
airline is required to offset CO₂ emissions from international flights above 85% of 2019 levels in 2024-2035 by
purchasing carbon credits. As CORSIA progresses through its phases, offsetting costs may increase, impacting
operational expenses.
While the European Union Emissions Trading System (EU ETS) applies to intra-European flights, Air Astana has
limited exposure due to the absence of scheduled intra-European operations, apart from occasional technical
flights. As a result, the financial impact of EU ETS on the airline remains minimal.
Domestically, Kazakhstan currently has no regulation on CO₂ emissions for aviation, meaning there are no
immediate compliance obligations or carbon pricing risks in the short term. However, in the medium term,
regulatory developments may introduce new carbon pricing mechanisms or emissions reduction requirements
for domestic aviation. If implemented, such policies could lead to additional compliance costs.
Technology: Sustainable Aviation Fuel mandates
The introduction of Sustainable Aviation Fuel (SAF) mandates in key markets where Air Astana Group operates,
including Europe and other international regions, may impose regulatory requirements for a minimum SAF
blend in jet fuel. This could lead to increased fuel costs, or an inability to procure SAF due to the lack of
availability in the marketplace.
While the availability of SAF in Central Asia remains limited, global advancements in SAF production and
policy-driven incentives may gradually extend to the region. Compliance with these mandates could
necessitate investment in new fuelling infrastructure, partnerships with SAF producers, and potential airfare
pricing adjustments to manage rising costs. However, these developments also present an opportunity for Air
Astana to strengthen its sustainability credentials, access green financing, and align with international aviation
decarbonisation goals.
Additional information Task Force on Climate-related Financial Disclosures (TCFD) continued
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AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
Additional information Task Force on Climate-related Financial Disclosures (TCFD) continued
STRATEGY (continued)
Disclose the actual and potential impacts of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial
planning where such information is material.
TCFD recommendation Progress to date
(a) Describe the climate-related
risks and opportunities the
organisation has identified over
the short, medium and long term
(continued)
PHYSICAL RISKS
Air Astana Group recognises that climate change poses acute and chronic physical risks that may impact flight
operations, airport infrastructure, and financial performance across its extensive network of international and
domestic destinations.
Physical: Acute
Acute physical risks, including extreme heat, heavy precipitation, pluvial flooding, wind gusts, and wildfires,
can cause immediate operational disruptions such as flight delays, cancellations, safety risks, and increased
maintenance costs. Rising temperatures can affect aircraft performance, particularly at high-altitude or
hot-weather airports, leading to payload restrictions and higher fuel consumption. Heavy precipitation and
flooding may disrupt ground operations, while strong wind gusts present challenges for take-off, landing, and
en-route turbulence. Additionally, wildfires near key destinations can impact operations due to reduced air
quality, airport closures, and visibility concerns.
Physical: Chronic
Chronic physical risks, such as rising maximum temperatures, prolonged changes in snow depth, increasing
asphalt binder temperatures, and fluvial flooding, present long-term challenges for aircraft efficiency, fuel
consumption, and operational planning. Higher ambient temperatures may increase cooling requirements for
aircraft systems, affecting overall energy efficiency. Changes in snow accumulation patterns could impact
winter operations, requiring adjustments in de-icing strategies and airport turnaround times. While runway
infrastructure is managed by airport authorities, higher temperatures can lead to longer take-off distances and
potential restrictions on aircraft weight, affecting scheduling and route planning.
OPPORTUNITES
Air Astana Group recognises that the transition to a low-carbon economy presents strategic opportunities to
enhance operational efficiency, strengthen market positioning, and create long-term value.
Resource efficiency: Fleet modernisation and fuel efficiency
Investment in advanced, fuel-efficient aircraft aligns with global aviation decarbonisation targets and offers
potential opportunities for resource efficiencies.
Resource efficiency: Optimising flight operations
Optimising flight operations can reduce flight times, flight management and fuel use.
Competitive positioning and sustainability leadership: Sustainable Aviation Fuel initiatives
Involvement in SAF initiatives supports the availability of SAF in the marketplace, can enhance the airline’s
sustainability credentials and provide a competitive edge in key markets.
Competitive positioning and sustainability leadership: Engaging new stakeholders in a low-carbon
economy
The global shift towards sustainability presents an opportunity to strengthen relationships with stakeholders
who prioritise climate action. Air Astana Group can attract environmentally conscious consumers, institutional
investors focused on green financing, and suppliers committed to ESG-aligned business practices.
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Additional information Task Force on Climate-related Financial Disclosures (TCFD) continued
STRATEGY (continued)
Disclose the actual and potential impacts of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial
planning where such information is material.
TCFD recommendation Progress to date
(b) Describe the impact of climate-
related risks and opportunities
on the organisation’s business,
strategy and financial planning
At Air Astana Group, we address material climate-related risks and opportunities when developing or updating
our ESG Strategy, Low-Carbon Development Program, and financial planning.
TRANSITION RISKS
Exposure to carbon regulation and SAF regulation can result in increased operating and compliance costs due
to increased carbon credit purchasing obligations under CORSIA, increased exposure to broader carbon tax
regimes, and increased costs of fuel. It may also be necessary to adapt to changes in infrastructure in the
event that SAF use is mandated.
To integrate climate transition risks into financial planning, we assess the potential impact of carbon pricing,
SAF adoption costs and fuel efficiency investments on our financial model. By incorporating long-term
sustainability planning into budgeting, we ensure financial resilience while meeting evolving regulatory
requirements.
Fleet and operations
To minimise our carbon exposure and reduce fuel dependency, we have committed to a comprehensive fleet
modernisation plan that prioritises fuel-efficient aircraft purchases and older aircraft retirements. By phasing
out older aircraft and investing in next-generation models we are significantly reducing our emissions intensity.
Additionally, we continuously invest in fuel efficiency enhancements in flight operations, including advanced
fuel management software to optimise consumption, improve route planning, and reduce emissions. These
measures align with our commitment to operational excellence and sustainability.
As Kazakhstan’s leading airline, we recognise the importance of mitigating climate change impacts, ensuring
regulatory compliance, and capitalising on emerging opportunities in sustainable aviation. Given that exposure
to carbon regulation changes and SAF mandates will lead to higher operating costs, fleet efficiency is a crucial
mitigation strategy.
Net-zero strategy
We have also developed a comprehensive ESG Strategy (2023–2032) that aligns with six priority UN SDGs. This
strategy outlines our long-term commitment to sustainability and positions us as a regional leader in
responsible aviation. Additionally, our Low-Carbon Development Program (LCDP) systematises efforts to reduce
emissions, optimise fuel consumption, and prepare for future regulatory changes. In 2024, we revised our net
zero commitment, moving our target from 2060 to 2050 in alignment with the global aviation industry’s goals,
rather than Kazakhstan’s national target. Following this decision, we recognized the need to update the LCDP
accordingly and began this work in 2024. It now incorporates a structured decarbonisation roadmap with
near-term targets for the next five years.
Sustainable aviation partnerships for production and procurement of SAF
With the introduction of SAF mandates in key international markets, we anticipate increased fuel costs and
potential infrastructure adaptation requirements. Although SAF is not yet widely available, we recognise its
importance in aviation decarbonisation and have taken proactive steps to prepare for SAF integration. To
address this, we co-financed a pre-feasibility study with KazMunayGas and the European Bank for
Reconstruction and Development to assess the potential for SAF production in Kazakhstan. Recognising the
absence of local SAF, we have also signed a strategic partnership memorandum with PetroChina International
Kazakhstan to explore alternative jet fuel sourcing options. This collaboration focuses on securing Jet A-1 fuel
imports and evaluating SAF imports from China to ensure regulatory compliance and supply stability.
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AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
Additional information Task Force on Climate-related Financial Disclosures (TCFD) continued
STRATEGY (continued)
Disclose the actual and potential impacts of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial
planning where such information is material.
TCFD recommendation Progress to date
(b) Describe the impact of climate-
related risks and opportunities
on the organisation’s business,
strategy and financial planning
(continued)
PHYSICAL RISKS
Physical risks are well integrated into the organisation’s strategy and financial planning, given that weather
events can result in operational delays and disruption. Our strategic response necessitates continued
investment in operational contingency planning, flight schedule optimisation, and enhanced safety measures
for crews and passengers, which are embedded into financial planning. Air Astana Group is also integrating
climate risk assessments into its business strategy, leveraging advanced weather-prediction tools, and
collaborating with industry stakeholders to mitigate climate-related disruptions across its network.
OPPORTUNITIES
Air Astana Group operates one of the youngest fleets globally. This modern fleet comprises fuel-efficient aircraft
such as the Airbus A320neo and A321neo, which contribute to reduced fuel consumption and lower CO₂
emissions. Continued investment in advanced, fuel-efficient aircraft aligns with global aviation decarbonisation
targets and offers potential operating cost reductions.
Operational efficiency remains a key opportunity for reducing emissions and controlling costs. Air Astana Group
is continuously enhancing fuel-efficient flight operations, including pilot training on fuel-saving techniques,
optimised route planning, improved aircraft weight management, and other. These measures not only lower
carbon emissions but also improve overall fuel economy, contributing to long-term financial and environmental
benefits.
Recognising the importance of SAF in reducing aviation’s carbon footprint, our strategic partnerships to explore
the feasibility of producing SAF in Kazakhstan underscore the Group’s commitment to sustainable practices,
and positions it to capitalise on emerging opportunities in SAF development. Involvement in SAF initiatives can
enhance the airline’s sustainability credentials, provide a competitive edge in key markets.
The global shift towards sustainability presents an opportunity to strengthen relationships with stakeholders who
prioritise climate action. Air Astana Group can attract environmentally conscious consumers, institutional investors
focused on green financing, and suppliers committed to ESG-aligned business practices. By positioning itself as a
sustainability-driven airline, the Group can enhance brand value, improve investor confidence, and establish strategic
partnerships with key stakeholders in the evolving low-carbon economy.
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Additional information Task Force on Climate-related Financial Disclosures (TCFD) continued
STRATEGY (continued)
Disclose the actual and potential impacts of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial
planning where such information is material.
TCFD recommendation Progress to date
(c) Describe the resilience of the
organisation’s strategy, taking
into consideration different
climate-related scenarios,
including a 2°C or lower scenario
Air Astana Group is implementing strategic and operational measures to reduce climate-related emissions,
enhancing its resilience to climate risks. In 2024 Air Astana Group collaborated with a consultancy firm to
conduct a climate scenario analysis that assessed potential risks and opportunities associated with climate
change, including physical impacts and regulatory and technological shifts.
Transition risk and opportunity assessment
Transition risks and opportunities arise from the global shift towards a low-carbon economy, driven by market
trends, policies, technological advancements, and regulations. Air Astana Group selected four NGFS scenarios
for calculation of transition risks:
1. NDC (Nationally Determined Contributions) – This action plan aims to reduce emissions and adapt to
climate impacts. NDC sets country-specific emissions reduction targets for adapting to climate impacts.
2. Below 2C – This scenario assumes a gradual tightening of climate regulation. In this scenario, the likelihood
of limiting global warming to 2°C is estimated at 67%.
3. Delayed transition – This scenario assumes that annual emissions will not decrease until 2030, followed by
a sharp tightening of carbon regulation.
4. Net zero – This scenario aims to limit global warming to 1.5°C through stringent climate regulation and
achieving net-zero CO
2
emissions by approximately 2050.
Multiple time horizons were considered, including short-term, medium-term and long-term.
For the purposes of the assessment, model REMIND-MAgPIE was selected as the most appropriate in terms of
price trends and reflecting all the necessary parameters. REMIND-MAgPIE is a comprehensive IAM framework
that simulates, in a forward-looking projection, the dynamics within and between the energy, land use, water,
air pollution and health, economy and climate systems. The models were created over a decade ago and are
continually being improved to provide up-to-date scientific evidence to decision and policy makers and other
relevant stakeholders on climate change mitigation and SDGs strategies.
Physical risk assessment
For the physical risk analysis that includes both acute and chronic events a special tool was used which
provides on-demand granular climate-related risks information. The tool is underpinned by climate projections
sourced from reliable climate models participating in the CORDEX initiative, that combines global and regional
models. Projections are obtained by selecting outputs for multiple IPCC experiments and scenarios: RCP 2.6
(low-emissions future), RCP 4.5 (intermediate emissions future), RCP 8.5 (high-emissions future). For the
analysis of physical risks Air Astana Group identified aircraft fleet and supply chain as the most exposed assets
to climate-related physical risks. A total of 29 locations that create the biggest financial profit for Air Astana
Group and present significant part of the Group’s value chain were selected for the scenario analysis. The key
physical climate-related risks were assessed against these scenarios and time horizons.
Resilience
The scenario analysis identified transition risks relating to carbon regulation, SAF costs and physical risk
impacts as key elements to continue to monitor. No significant impacts were identified in the short and
medium term. Due to the significant uncertainty associated with climate-related scenario analysis, the Group
will continue to monitor climate-related risk and opportunity assessment in line with best practice.
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AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
RISK MANAGEMENT
Disclose how the organisation identifies, assesses, and manages climate-related risk.
TCFD recommendation Progress to date
(a) Describe the organisation’s
processes for identifying and
assessing climate-related risks
The Air Astana Group’s approach for the identification and assessment of climate-related risks is integrated into
its overall risk management framework ensuring alignment with the methodology used for evaluating all other
risks faced by the Group.
Identification
The Sustainability department works closely with the Risk management team to identify and assess
sustainability risks, including climate-related risks. We identify and assess both physical and transition risks
associated with climate change. For this, we collaborate with external consultants, leveraging their expertise in
climate risk modelling, regulatory analysis, and industry best practices to ensure a comprehensive and
informed approach. Physical risks include acute weather events and chronic climate changes that may impact
flight operations, infrastructure and supply chains. Transition risks encompass regulatory changes, shifts in
market preferences, and technological advancements aimed at reducing carbon emissions. Regulatory horizon
scanning, scenario analysis and stakeholder engagement informs our approach to identifying risk.
Assessment
We continuously monitor regulatory developments related to climate change, including emissions limits,
carbon-pricing mechanisms, and sustainability reporting requirements. Compliance with aviation industry
regulations, such as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and
national greenhouse gas reduction targets, is integrated into our risk assessment process. Engagement with
regulatory bodies, industry stakeholders and sustainability organisations enables us to assess the risk and to
stay ahead of emerging policy changes and industry standards.
Climate-related risks are evaluated alongside traditional operational, financial, and strategic risks. Risks are
prioritised based on their potential financial impact, operational disruption, regulatory implications, and
reputational effects. Details on the Group’s risk identification and assessment processes can be found in the
Risk Management section of this Integrated Report on page 74.
(b) Describe the organisation’s
processes for managing climate
related risks
Air Astana Group integrates climate-related risk management into its broader Risk Management System,
ensuring a systematic and continuous approach. This well structured and collaborative process involves
multiple teams and departments.
The senior management team is regularly updated on the current risk landscape, including climate-related
risks, and reports quarterly to the Audit Committee on the effectiveness of the risk management system. This
report includes an assessment of significant risks and the measures taken to mitigate them.
To manage identified risks, mitigation actions are developed and assigned to relevant risk owners who are
experts in their respective areas. This approach allows the Group to effectively prepare for long-term
climate-related challenges while maintaining agility in addressing short-term risks. Mitigation actions for
managing climate-related risks are described in the Risk Management section of this Integrated Report on
page 74.
(c) Describe how processes for
identifying, assessing and
managing climate-related risks
are incorporated into the
business overall risk
management.
The Air Astana Group integrates the identification, assessment, and management of climate-related risks into
its overall risk management framework, carrying out these processes within its CRMS, as outlined in the Risk
Management section of this Integrated Report on page 74.
Additional information Task Force on Climate-related Financial Disclosures (TCFD) continued
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METRICS AND TARGETS
Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.
TCFD recommendation Progress to date
(a) Disclose the metrics used by the
organisation to assess the
climate-related risks and
opportunities in line with its
strategy and risk management
process
Air Astana Group is committed to achieving carbon neutrality by 2050, aligning with the aviation sector’s
Long-Term Aspirational Goal (LTAG). We are dedicated to implementing sustainable practices, improving fuel
efficiency and exploring alternative energy sources to reduce our carbon footprint.
The following metrics are disclosed on page 56 within the Sustainability section of this Integrated Report:
►
Total CO
2
emissions (tonnes) from aircraft operations
►
CO
2
emissions intensity (Total CO
2
emissions/ASK)
►
CO
2
emissions intensity (Total CO
2
emissions/RPK)
►
Energy consumption
►
Volume of recycled waste
►
Volume of disposed waste.
(b) Disclose Scope 1, Scope 2, and if
appropriate, Scope 3 GHG and
the related risks
Air Astana Group calculates its CO₂ emissions in accordance with the Greenhouse Gas Protocol (GHG Protocol), which
categorises emissions into three main scopes. The majority of our CO₂ emissions fall under Scope 1, comprising
direct emissions from our aircraft. However, we acknowledge that greenhouse gas emissions also occur throughout
our value chain. Details of our Scope 1 and Scope 2 emissions can be found on page 56 of the Sustainability section
in this Integrated Report. Our Scope 1 emissions footprint has undergone independent verification with reasonable
assurance by Normec Verifavia, a globally recognised leader in environmental validation, verification, and auditing
for the transport sector, accredited by UKAS and COFRAC. Recognising the importance of Scope 3 emissions, we have
made significant progress in our plans to begin their calculation in 2025.
(c) Describe the targets used by
the organisation to manage
climate-related risks and
opportunities and performance
against targets
The Group has sets targets as part of the LCDP which is incorporated into the Group’s ESG Strategy and is
consistent with Kazakhstan’s aim to achieve carbon neutrality by 2060. In 2024, we revised our net zero
commitment, moving our target from 2060 to 2050 in alignment with the global aviation industry’s goals,
rather than Kazakhstan’s national target. Following this decision, we recognized the need to update the LCDP
accordingly and began this work in 2024. It now incorporates a structured decarbonisation roadmap with
near-term targets for the next five years..
The Group is planning to calculate and disclose its Scope 3 emissions in 2025.
Additional information Task Force on Climate-related Financial Disclosures (TCFD) continued
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AT A GLANCE STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION
Additional information
Glossary
AAK Aviation Administration of Kazakhstan
ACTK Available cargo tonne-kilometres
Air Astana Group Air Astana and FlyArystan brands
AOC Air Operator Certificate
APEX Airline Passenger Experience Association
ASK Available-seat kilometres
CAA Civil Aviation Administration
CAC Civil Aviation Committee
CASK Cost of Available Seat Kilometre
CEET Cabin Emergency Evacuation Trainers
CRMS Corporate Risk Management System
CSAT Customer Satisfaction Ratings
CTK Cargo tonne-kilometres
E&M Engineering and Maintenance
EASA European Aviation Safety Agency
EBITDAR Earnings before interest, taxes, depreciation,
amortisation, and restructuring or rent costs
EBRD European Bank for Reconstruction and
Development
EC European Commission
ECLs Expected credit losses
EME Extraordinary market event
ESG Environmental, Social and Governance
FH Fuel hedging
FRMS Fatigue Risk Management System
FVOCI Fair value through other comprehensive income
FVTPL Fair value through profit or loss
GHG Greenhouse Gas
GRF Global Reporting Format
GRI Global Reporting Initiative
HEART Hospitable, Efficient, Active, Reliable, Trustworthy
HSE Health, Safety and Environment
IAA Irish Aviation Authority
IAS Internal Audit Service
IATA The International Air Transport Association
ICAO International Civil Aviation Organisation
IFRS International Financial Reporting Standards
IOSA IATA Operational Safety Audit
ISO International Organization for Standardization
KPI Key Performance Indicator
LCC Low-cost carrier
LCDP Low-Carbon Development Programme
MRO Maintenance, Repair, Overhaul
NPS Net Promoter Score
RPK Revenue Passengers Kilometres
SCAA State Civil Aviation Agency
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About this report
Reporting scope and boundaries
The scope of this Annual Report encompasses Air Astana Group’s operations for the period
from 1 January to 31 December 2024. Ourreporting boundaries primarily focus on activities
directly managed and controlled by Air Astana Group. While we strive for transparency and
accuracy in reporting, it’s important to note that certain data may be subject to limitations,
such as availability, reliability, and comparability. We have made reasonable efforts to
address these constraints and provide meaningful insights.
Reporting standards and external assurance
In preparing this Annual Report, we have adhered to internationally recognised
frameworks and standards to ensure the quality and consistency of our disclosures.
Our disclosures align with the Global Reporting Initiative (GRI 2021) Standards, the Task
Force on Climate-related Financial Disclosures (TCFD) recommendations, and the
International Financial Reporting Standards (IFRS).
To provide assurance on the accuracy and reliability of our sustainability-related
information, we have engaged PricewaterhouseCoopers Tax & Advisory LLP to conduct
limited assurance. The financial statements included in this report have been audited by
KPMG Audit LLC in accordance with International Standards on Auditing (ISAs).
We are committed to upholding the highest standards of reporting excellence and will
continue to engage with independent assurance providers to strengthen the trust and
confidence of our stakeholders in our disclosures.
Note:
Throughout this Integrated Report, the terms ‘Company’, ‘Air Astana’, ‘We’ refer to Air
Astana JSC while ‘Group’ encompasses both AirAstana JSC and FlyArystan JSC. Air Astana
JSC is a sole shareholder of FlyArystan JSC.
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