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Air Astana and China Southern to form joint venture on Kazakhstan–China routes

Carriers team up to safeguard market share amid aggressive competitor expansion

5 November 2026 CentralAsia+Aero
Air Astana and China Southern Airlines have signed a joint venture agreement covering flights between Kazakhstan and China
Image: Ministry of Transport of Kazakhstan

Air Astana and China Southern Airlines have signed a joint venture agreement covering flights between Kazakhstan and China.

For the Central Asian market, this marks the first airline joint venture between region’s airline and a Chinese carrier moving beyond a traditional code-share partnership toward deeper commercial cooperation.

Under the agreement, the carriers will coordinate flight schedules, expand code-share offering, and execute joint marketing and sales initiatives. According to their statement, network synergies will streamline passenger itineraries by establishing unified service standards, optimizing connection windows, and broadening network reach across both home markets and beyond.

«China is a strategically important market for Air Astana, and Kazakhstan is well positioned as a gateway connecting Europe and Asia», said Richard Ledger, VP, Partnerships and Alliances at Air Astana.

The agreement builds on an existing code-share pact signed in July 2025 covering 10 routes. Air Astana (KC) currently places its partner’s code on its services from Almaty to Beijing (Capital, PEK), Guangzhou, and Urumqi, as well as from Astana to Beijing—totaling up to 36 weekly round-trip flights during peak season. In return, China Southern (CZ) operates to Almaty from Beijing (Daxing, PKX), Guangzhou, Urumqi, and Xi’an, alongside Astana services from Guangzhou and Urumqi, contributing up to 29 weekly frequencies.

Capacity dynamics and market share shifts

The joint venture responds to rapid capacity growth and escalating frequency on Kazakhstan–China routes.

“Flight frequencies between our countries have surged by 52% year-over-year, reaching 117 weekly scheduled flights across 21 routes. Since the start of 2026, passenger traffic on these routes has exceeded one million. Looking ahead, the Ministry plans to further scale our air connectivity with China, expanding the route network to 30 destinations,” stated Talgat Lastaev, Deputy Minister of Transport of Kazakhstan.

The primary commercial objective of the alignment is defending joint market dominance. Together, full-service airlines China Southern and Air Astana command just over 50% of total offered capacity. However, their combined market share contracted from 57.2% in the prior-year period, driven by aggressive capacity additions from competing carriers.

Regulatory context and transit viability

The market expansion follows bilateral intergovernmental agreements finalized in July, which raised authorized regular passenger frequencies by 22.6%—from 124 to 152 weekly flights. The bilateral framework also expanded the list of designated Chinese points to 11 cities, adding Chongqing.

Official statements highlight prospective traffic growth to destinations beyond both carriers’ domestic markets. Industry analysts note, however, that beyond-transit flows are likely to remain asymmetric: demand among mainland Chinese passengers for transit via Central Asian hubs remains minimal, meaning beyond-gateway connectivity benefits will accrue primarily to outbound Kazakh traffic.

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