Citation:

Shovgi Mahmudov. "Corporate Governance and Financial Performance in Caspian Region Airlines: Evidence from Five State-Influenced Carriers, 2018–2024" International Research Journal of Economics and Management Studies, Vol. 5, No. 6, pp. 116-119, 2026. Crossref. http://doi.org/10.56472/25835238/IRJEMS-V5I6P111

Abstract:

This paper examines whether corporate governance quality predicts financial performance across five Caspian region airlines — Air Astana (Kazakhstan), Aeroflot (Russia), AZAL (Azerbaijan Airlines), Turkmenistan Airlines (Turkmenistan), and Iran Air (Iran) — over the period 2018 to 2024. Using an original eight-dimension composite governance scoring framework with a maximum of ten points, the study constructs a panel dataset of 33 usable observations and estimates fixed-effects panel regression models. Revenue per Available Seat Kilometre (RASK), Cost per Available Seat Kilometre (CASK), and unit margin (RASK minus CASK) serve as dependent variables. The governance score is a statistically significant positive predictor of unit margin (b = 0.47, p < 0.01) and RASK, and a significant negative predictor of CASK, after controlling for oil price, gross domestic product (GDP) growth, and the COVID-19 demand shock. Air Astana — the most highly governed carrier at six to seven points — is the only sample carrier to achieve sustained positive unit margins in the post-pandemic recovery period. Results are consistent with agency theory predictions and contribute panel evidence from a geographically underrepresented emerging aviation market.

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Keywords:

Caspian Aviation, CASK, Corporate Governance, Emerging Markets, Panel Regression, RASK, State-Owned Enterprises, Unit Margin.