Digital Transformation at Air Astana

Businesses around the world are being transformed by the digital revolution. Information technology is not just the future, it’s now the new reality that changes how companies operate, allowing them to be more effective and productive in this vibrant modern economy. Air Astana is no exception.

What has been the impact of this digital transformation on the national carrier?

Aviation by its nature is a very complex business. Many processes need to be synchronised in the strictest compliance with technical, operational, and many other

regulations. Peter Foster, President and CEO of Air Astana, says, “The aviation business is a kind of symbiosis of technology and art”. This has always demanded the highest level of technological effectiveness and automation, which is why airlines have been at the cutting edge of progress since the beginning of the aviation era. Nevertheless, the new age of rapid development in technologies means we must move faster than ever, implementing the new approaches that address the airline’s strategic and operational issues.

Automation of operational processes

Various applications have been introduced to improve the data flows and interaction within and between many of the airline’s departments.

These, amongst others, include Crew

Pads – tablets with specific software for flight attendants, Station Control System – controlling aircraft handling for ground services, and the Electronic Flight Bag – an electronic cabin for pilots. All these prove that paperless data flows are not only environmentally friendly, but extremely efficient. A key milestone in airline data flow management is the collection of all available information about each and every flight in the Flight Information System, which enables complete data processing, analysis from different angles and prompt decision making.

Any changes to the airline business processes are designed to benefit the customer. To improve customer

experience the airline, along with various other initiatives, is implementing the new generation Customer Relationships Management System. We constantly and proactively work on upgrades for the systems we use to interact with our passengers, improve our loyalty programme and streamline feedback and data collection so that our customers have the best possible experience not only during the flight, but also while booking and after arrival.

Procurement and Financial Accounting

The automation of procurement and financial accounting is one of the most important changes in business. It is worth noting that in addition to the strict regulations and boundaries on procurement activity for companies that are majority owned by the National Welfare

Fund, Samruk-kazyna, Air Astana follows its own high standards for transparency and efficiency in purchase agreements. Nonetheless, along with the Fund, the airline’s Procurement and IT Departments have significantly improved and automated their tender infrastructure in order to minimise manual input, while the digitalisation of agreement approval flows has dramatically reduced time frames for the signing and filing of these agreements, which in turn sets another level of transparency for the airline’s procurement process.

The introduction of the Finnovation Programme is a major change that has entailed a global review of financial department functions. The programme covers a wide range of issues and one of its most important goals is the automation of airline payments, abolishing the bureaucratic paper processes entirely. That has largely been achieved. The KC Pay system has

developed and installed for the electronic authorisation of payments. Paybox functionality has also been deployed, which provides a unique direct connection to the systems of partner banks. The digitalisation of these vital finance processes has significantly improved efficiency and strengthened financial controls.

In addition to payment optimisation, the airline, in partnership with Kazpost, implements real-time data exchange for airmail deliveries. The next global goal is the digitalisation of the airline’s direct operational expenses, using the newly developed Accrual Management System.

Engagement through technology

Employee experience is a major part of efficiency improvement, which considers interactions between employees and the company with a clear focus on a better work environment, simplifying processes and new technologies that take into account feedback and modern trends. Air Astana has pioneered the introduction of electronic digital signatures (EDS) in Kazakhstan. As every employee has a digital signature, the airline’s internal document flow has been completely transformed into a digital format, and all verification and signature processes for employment contracts, orders and office memos are now taking place within an electronic document system. Responding to the current trend for business mobility, connectivity and feedback, Air Astana has deployed an internal mobile app for its employees, KC Aрр, which promptly delivers information to all employees around the globe and addresses professional issues. The KC Recognition Programme gives employees a unique tool with which to express their gratitude to colleagues for help and seek assistance in solving various operations tasks and issues, and the KC Feedback platform allows real-time feedback on personnel performance. All these cement our approach: engaged employee – happy client.

As the implementation of various digital initiatives falls on the airline’s IT division, it becomes a very hard task to handle all these alongside the daily routine of maintenance and development of dozens of the airline’s operational systems and applications. Noting a severe shortage of qualified candidates on the market, the airline has opened its doors to trainees. In

addition to its own Internship Programme,

Air Astana is also taking an active part in programmes at the Samruk-kazyna Corporate University, such as Zhas Orken and Digital Summer, which are aimed at helping young people gain a wide experience in national companies. Some of these young interns have become airline employees.

The larger the company is, the more difficult it is to implement innovations and initiatives of a digital nature. It is much harder to change the approaches to the processes than to change the processes themselves. The HR Department has recently established a Training Academy to address these challenges by running regular training sessions, focus groups, engagement surveys and constant feedback analysis.

The main goals under the internal processes transformation are to sustain Air Astana’s innovative culture, where everyone contributes and takes certain responsibility for the overall performance and results in full compliance with corporate values and strategy.

Thus, as part of the ‘Imagine if…’ strategy, a cascading corporate programme that engaged with staff of all levels, employees were given an opportunity to consider what they would do differently or change if they had the chance to make a fresh start at the airline. As a result of these sessions Air Astana started a number of new initiatives, found solutions to business process optimisation, improved efficiency and reduced costs. All these allowed Flyarystan, the country’s first low-cost carrier, to be launched within a record-breaking time frame, and in full compliance with the commitments given to the first President of Kazakhstan.

In conclusion, it is worth noting that despite all the challenges and difficulties faced on the way towards a digital transformation,

Air Astana is boldly taking on the future by following an aspirational strategy based on growth, efficiency and excellence. The results of this digital transformation cannot be overstated as they clearly improve the operational and financial efficiency of the national carrier. We are absolutely sure that all the goals we have set are achievable, as we have the most important asset – professional human potential.