An analysis of MRO diversification strategy approach as a strategic growth option in medium sized airlines, the case of Air Astana., 2018
Today, commercial aviation is a highly volatile, diverse and competitive market sector which cons... more Today, commercial aviation is a highly volatile, diverse and competitive market sector which constantly creates challenges not only to new market players but also to established airlines. In order to successfully address them, many full-cost and some low-cost carriers have initiated deliberate actions to diversify their business structure into non-core ancillary business units as a strategic growth option. Usually, these units are: in-flight catering, cargo, IT technologies, travel agencies and heavy aircraft maintenance (MRO). In some cases, these non-core business units tend to outperform core business which is air transportation, opening profitable perspective to further investment on this way. Such cases can be noticed in large airlines. For example, Lufthansa has been successfully leveraging the potential of its diversified non-core assets, which provide substantial profit for the parent company. Air Astana has also recently adopted course towards diversification strategy in order to seek strategic growth through MRO. Since Air Astana is a medium-sized airline, implementation of the diversification strategy is constrained with different factors raising question related to its viability. Therefore, in this dissertation project different areas related to airline strategy formulation as regard to the diversification strategy, current MRO strategy and market trends and macro and micro-environmental analysis have been considered to critically analyse Air Astana’s diversification strategy. In addition to the secondary literature data, primary has also been employed into this research. Further, research findings show that whilst Air Astana is capable to diversify business strategy through MRO approach there are some areas which are needs to be addressed. However, it should be noted that research has been conducted within defined limitations and future works on this study has been suggested.
An analysis of MRO diversification strategy approach as a strategic growth option in medium sized airlines, the case of Air Astana., 2018
Today, commercial aviation is a highly volatile, diverse and competitive market sector which cons... more Today, commercial aviation is a highly volatile, diverse and competitive market sector which constantly creates challenges not only to new market players but also to established airlines. In order to successfully address them, many full-cost and some low-cost carriers have initiated deliberate actions to diversify their business structure into non-core ancillary business units as a strategic growth option. Usually, these units are: in-flight catering, cargo, IT technologies, travel agencies and heavy aircraft maintenance (MRO). In some cases, these non-core business units tend to outperform core business which is air transportation, opening profitable perspective to further investment on this way. Such cases can be noticed in large airlines. For example, Lufthansa has been successfully leveraging the potential of its diversified non-core assets, which provide substantial profit for the parent company. Air Astana has also recently adopted course towards diversification strategy in order to seek strategic growth through MRO. Since Air Astana is a medium-sized airline, implementation of the diversification strategy is constrained with different factors raising question related to its viability. Therefore, in this dissertation project different areas related to airline strategy formulation as regard to the diversification strategy, current MRO strategy and market trends and macro and micro-environmental analysis have been considered to critically analyse Air Astana’s diversification strategy. In addition to the secondary literature data, primary has also been employed into this research. Further, research findings show that whilst Air Astana is capable to diversify business strategy through MRO approach there are some areas which are needs to be addressed. However, it should be noted that research has been conducted within defined limitations and future works on this study has been suggested.
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Papers by Kanat Kalmenov
In some cases, these non-core business units tend to outperform core business which is air transportation, opening profitable perspective to further investment on this way. Such cases can be noticed in large airlines. For example, Lufthansa has been successfully leveraging the potential of its diversified non-core assets, which provide substantial profit for the parent company.
Air Astana has also recently adopted course towards diversification strategy in order to seek strategic growth through MRO. Since Air Astana is a medium-sized airline, implementation of the diversification strategy is constrained with different factors raising question related to its viability. Therefore, in this dissertation project different areas related to airline strategy formulation as regard to the diversification strategy, current MRO strategy and market trends and macro and micro-environmental analysis have been considered to critically analyse Air Astana’s diversification strategy. In addition to the secondary literature data, primary has also been employed into this research.
Further, research findings show that whilst Air Astana is capable to diversify business strategy through MRO approach there are some areas which are needs to be addressed. However, it should be noted that research has been conducted within defined limitations and future works on this study has been suggested.
In some cases, these non-core business units tend to outperform core business which is air transportation, opening profitable perspective to further investment on this way. Such cases can be noticed in large airlines. For example, Lufthansa has been successfully leveraging the potential of its diversified non-core assets, which provide substantial profit for the parent company.
Air Astana has also recently adopted course towards diversification strategy in order to seek strategic growth through MRO. Since Air Astana is a medium-sized airline, implementation of the diversification strategy is constrained with different factors raising question related to its viability. Therefore, in this dissertation project different areas related to airline strategy formulation as regard to the diversification strategy, current MRO strategy and market trends and macro and micro-environmental analysis have been considered to critically analyse Air Astana’s diversification strategy. In addition to the secondary literature data, primary has also been employed into this research.
Further, research findings show that whilst Air Astana is capable to diversify business strategy through MRO approach there are some areas which are needs to be addressed. However, it should be noted that research has been conducted within defined limitations and future works on this study has been suggested.