TURKISH AIRLINES

Turkish Airlines

Turkish Airlines

Introduction

Company Overview - Turkish Airlines

Turkish Airlines is a Turkey-based airline company providing domestic and international air transport and cargo services. It has operations in Europe, Africa, North America, the Far East and the Middle East. It is headquartered in Istanbul, Turkey and employs 12,750 people. Turkish Airlines is one of the leading airline companies in Europe. Its principal activity includes domestic and international air transportation of passengers and cargo. The company has operations in Europe, Africa, North America, the Far East and the Middle East. It operates in 156 destinations including 37 domestic and 119 international destinations. The company is a member of the Star Alliance. Star Alliance currently has 27 member airlines with more than 21,200 daily departures. The company operates through two segments: air transportation and aircraft technical maintenance operations (Robson, 2005, 45-50).

Air transportation segment provides passenger, cargo, technical and training services, as well as online services such as electronic ticketing, online check-in, schedule, cargo reservation and tariffs, baggage tracking and departure-arrival data services. The company operates domestic services through AnadoluJet subsidiary. In FY2009, Turkish Airlines operated 132 aircrafts with a total seat capacity of 23,549 passengers at an average fleet age of 6.2 years. In addition, the company totally carried about 25.1 million passengers with a load factor of 70.9%. Furthermore, it covered 56,574 million available seat kilometres (ASK) and 40,130 million revenue passenger kilometres (RPK). It also covered a distance of 311.9 million kilometres (kms) and carried 230.7 million tons of cargo and 7.4 million tons of mail in FY2009. In the domestic market, the company carried 11.7 million passengers in FY2009 with a load factor of 75.4%. It covered a distance of 56.3 million kms and carried more than 33 million tons of cargo and 3.5 million tons of mail in FY2009. In the international arena, Turkish Airlines carried 13.4 million passengers in FY2009 with a load factor of 70.1%. For the same period, the company covered a distance of 255.6 million kms and also carried 197.7 million tons of cargo and 3.8 million tons of mail. Turkish Airlines' aircraft technical maintenance operations segment performs its business operations through its subsidiary Turkish Technic (Datamonitor, 2010, 11-15).

The company recorded revenues of TRY 7 035.9 million (£4,546.6 million) in the financial year ended December 2009 (FY2009), an increase of 14.9% over FY2008. The operating profit of the company was TRY632.8 million (£408.9 million) in FY2009, an increase of 19.2% over FY2008. The net profit was TRY559.1 million (£361.3 million) in FY2009, a decrease of 50.7% compared to FY2008.

Industry Global Outlook

The International Airlines industry is expected to face increased competition over the next five years. Companies that have survived to see the recession subside have experienced a recovery in demand from passengers, but prices have not recovered as quickly. Inbound tourists will continue to provide the largest source of revenue for the industry, with world GDP growth having picked up in 2010 and 2011. Therefore, travel to the United States is expected to ...