KONU BAŞLIĞI YAZIM ALANI

KONU BAŞLIĞI YAZIM ALANI

26/04/2014

Developing Air Linkages in the OIC Member Countries

The Case of Turkish Airlines

Global Rankings (Network Size)

TK is flying to more countries than

any other airline in the world

TK is the 4 th largest airline in

terms of network size

TK is flying to more international

destination than any other airline in the

world

1 4 1

2

108 Country

218 International Destinations

263 Destinations in the World

* Rankings are based on OAG data from April 2014

4 star airline in all services

Catering

The best airline for in-flight food

(according to Skyscanner)

Winner of Air Transport World-Market

Leadership Award’11

Market Leader

1 Best Airline in Europe

Global Rankings (Quality)

3

4 year in a row BEST AIRLINE IN EUROPE (2014)

Airline of the Year Award (CAPA ,2013)

Best Business Class Catering in the World

Best Business Class Catering in Lounge in the World

Sponsorships and Commercials

4

Affiliates

Company

Operation

Maintenance

Catering

Ground Services

Engine Maintenance

Jet Fuel Supply

Ownership

100%

50%

50%

49%

50%

Affiliates

Company

Operation

Aviation Maintenance

Cargo Transport

Airline

Airline

Ownership

100%

100%

50%

100%

Star Alliance Member

7

TURKISH AIRLINES’ CODESHARE PARTNERS TOTAL 34 - STAR PARTNERS 18

9

Turkish Airlines’ World

Country Destination

DOMESTIC 1 45

INTERNATIONAL 107 218 EUROPE 41 101

FAR EAST 21 31 MIDDLE EAST 14 34

AFRICA 27 42

NORTH AMERICA 2 8 SOUTH AMERICA 2 2

108 COUNTRY

263 DESTINATION

TK Operated Sectors To OIC Member Countries

Afghanistan

Azerbaijan

Bahrain

Bangladesh

Benin

United Arab Emirates

Burkina Faso

Algeria

Djibouti

Chad

Indonesia

Morocco

Ivory Coast Gabon

Iraq

Iran

Cameroon

Qatar Kazakhistan

Kuwait

Lebanon

Malaysia Maldives

Egypt

Mauritania

Niger

Nigeria Uzbekistan Pakistan

Senegal

Somalia Sudan

Saudi Arabia

2002 THY Network (4 Destinations)

Planned (7 Destinations)

2003 - 2014 (38 New Destinations)

AFRICA

12

KATANYA

KASSEL

MUNSTER

VARNA

PISA

EUROPE

2002 THY Network (40 Destinations)

Planned (5 Destinations)

2013 - Current (40 New Destinations)

13

AMERICA

2002 THY Network (2 Destinations)

Planned (6 Destinations)

2003 - 2014 ( 8 New Destinations)

14 Planned (2 Destinations)

2003 - 2014 (23 New Destinations)

2002 THY Network (11 Destinations)

MIDDLE EAST

15

2002 THY Network 18 Destinations

Planned (3 Destinations)

2003 - 2014 (33 New Destinations)

FAR EAST

5 5 6 7 9 10 11 12 14 15 16 20

26

5 5 6 7

8 10

12 13

16 18

23

28

33

10,3 10,4 11,9 14

16,9 19,7

22,6 25,1

29,1 32,7

39

48,1

59,5

-20

-10

0

10

20

30

40

50

60

70

0

10

20

30

40

50

60

70

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014B

Domestic International Total

16

Turkish Airlines Passenger Numbers

2004 – 2014: CAGR=17% X

1 m

illion

17

Geographical Advantage

Within narrow body range;

70% of international destinations,

More than 55 countries

* Size of bubbles shows the traffic volume

Advantages / Geographical Location

The advantage is to become a global hub of Istanbul

Istanbul is in the middle of Europe, Middle East and Asia regions with high volume of traffic and growth rate.

18

Top 20 busiest airport (International Traffic)

~%17

Detour distance advantage from Europe

~%10

~%6

0,00

5,00

10,00

15,00

0 100 200 300 400 500 600 700 800

Unit Cost– Flight Time Change

CA

SK

1 2 3 4 5 6 7 8 9 10 11 12 Hour

Third Airport

3rd Bridge

Atatürk International Airport

Black Sea

Sabiha Gökçen

Istanbul

19

76.5 km2 Area

500 Aircraft Park Positions

6 Runways

4 Terminals

150 million

PASSENGERS CAPACITY (Phase4)

A candidate for 3rd Biggest (After Phase 1) & Biggest (After All Phases) in the World

3rd Airport In Istanbul

Cargo Development

Leading cargo carrier in total export and import

cargo in Turkey.

As from April 2014, operates 49 destinations with its 3 A310-300 and 6 A330-200F freighters.

In 2013, 565,000 ton cargo were carried.

20

6 6th largest cargo

carrier of Europe in total carried cargo

ton km

2005 2006 2007 2008 2009 2010 2011 2012 2013

115 126 145 161 201

274 334

422

518

30 33 39 38

36

39

37

40

47

Cargo (ton)

Domestic International22%

Cargo(ton) 2013 July 2014 July

Domestic 27,099 29,809

International 284,973 349,164

10%

22%

X1

00

0

Passenger Traffic Flow Development

Total Scheduled Revenue Passenger-Kilometers To/From and Intra Regions (trillions)

21 Source: Boeing Current Market Outlook 2013-2033, IATA Industry Financial Forecast March 2014

Total Revenue (2014F)

745 Billion USD (2013 -2014 5.3% growth)

Schd. Passenger (2014F)

3.3 Billion

(2013 -2014 5.6% growth)

RPK (2014F)

6.1 Trillion

(2013 -2014 5.8% growth)

2033 2013

2,0

4,6

2,2

7,4

2,0

3,9

0,6

1,9

0,3

0,9 0,6

2,2

Europe Asia Pacific North America Latin America Africa Middle East

Geographic centre of gravity of departing/arriving/connecting passengers per city

Until recently, the airline industry was

viewed as the center of Europe

Traffic as month of September; estimates for historic passenger derived from offered seats; respective centres of gravity as median of city coordinates weighted by passenger traffic

Source: Airbus Global Market Forecast 2012

Driving The Center Of Gravity Of Traffic To The South And East

After 2020, the industry will move to the center to the

East

Cities,like Istanbul, Doha, Abu Dhabi and Dubai, will

play a key role as centers of the new attraction

22

-4%

2%

-2%

14%

6% 6%

4%

2%

-1%

9%

6% 5%

5% 6% 6%

-3%

15% 15%

19% 19%

13% 17%

19%

23%

27%

23% 19%

-5%

0%

5%

10%

15%

20%

25%

30%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014June

World RPK Growth THY RPK Growth

Log. (World RPK Growth) Log. (THY RPK Growth)

Aviation Market

RPK Growth %

13p

2003 – 2013 Passenger Growth Rates

Next 20 years, World passenger traffic (RPK) growth

rate %4.7 Population growth rate %0.9 Source: IATA, Airbus GMF 2013

23

76%

258%

363%

world tr tk

International Passenger Growth

24

Africa

Asia - Pasific

Europe

Latin America Middle East

North America

Average

0

500

1.000

1.500

2.000

2.500

2,5% 3,0% 3,5% 4,0% 4,5% 5,0% 5,5% 6,0% 6,5%

20

31

Pas

sen

ger

Nu

mb

er

2011-2031 Annual Average Growth (CAGR)

International Passenger Growth Regionally (2011 - 2031)

*The diameter of spheres show extra passenger number in 2031 compare to 2011

• Although growth rate of international passengers at European airports will be lower than the rest of the world, Europe will still have the biggest international passenger share.

Source: ACI 2012-2031 Traffic Forecast

Barriers In Member States & Recommendations

25

Taking Out Non- Physical Barriers

*Maximizing the operations, services and limited recourses in

member countries.

* Economies of Scale: The more the supplies- the less costs

*Increasing propensity to travel within the member states.

Reduce Non-Infrastructural Barriers

Remove frequency and capacity restrictions

To Increase Travel And Trade Between OIC Countries

Visa Requirements

• Transit travel via Turkey: NO VISA required for available Schengen, UK

and/or USA visa

• E-visa is ready within 2 hours after application

• NO VISA required for stop-overs up to 72 hours

• Ministry of Foreign Affairs of Turkey has been striving in principle, for

reciprocally exemption of visas between Turkey and other countries

26