OPTIMIZATION OF ROUTE NETWORK TO ENHANCE OPERATIONAL EFFICIENCY OF QAZAQ AIR
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Date
2019-12-10
Authors
Heuijin, Lee
Irgaliyeva, Dana
Mshanov, Nurlan
Toleu, Manarbek
Journal Title
Journal ISSN
Volume Title
Publisher
Nazarbayev University, Graduate School of Business
Abstract
Qazaq Air was launched in 2015 as a regional airline to support
government’s task to enhance safety and accessibility of interregional air traffic
aiming to boost economic development. Currently, the company is undergoing
the transition from the stage of formation to the stage of active development.
Although the company demonstrated a dynamic growth in recent years, they are
in serious deficit in operational profit amounting to almost 7 billion KZT.
Given that, Qazaq Air is seeking for new destinations to improve the
operational profits and enhance flight operation. After careful analysis of the
airline industry and the company’s operations, the practicum team applied several
models for implementation to enhance the Qazaq Air performance. The pricing
model theory was used for most profitable route monopolized by the company
and the newsvendor model was used to improve the least profitable route.
Moreover, based on the performance indicators derived from the data analysis a
new route network is recommending subsidized routes.
Description
Keywords
Type of access: Restricted, Qazaq Air, airline
Citation
Heuijin, L. Irgaliyeva, D. Mshanov, N. Toleu, M. (2019). Optimization of Route Network to Enhance Operational Efficiency of Qazaq Air. Nazarbayev University, Graduate School of Business.