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Chairman’s Message Best Airline in Europe Airline of the Year New Brand Strategy Lounge Istanbal Flight Leader Network Fleet New Destinations Financial Analysis Financial Performance Forcast for 2014 Financial Management Network Carrier Competitive Advantages Board of Directors
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Esteemed stakeholders, valued business partners and employees, In 2013 Turkish Airlines continued its traditional growth as it has in the past 11 years. The year was marked by increased passenger traffic and was crowned with positive financial results. The company managed to satisfy its customers with friendly service and its stakeholders with successful financial results. The global aviation industry continues to grow despite several economic crises it has faced. Industry research reveals that international commercial relations, cultural affairs and touristic travels are the major driving forces behind this growth. However, an increase in traffic numbers does not always signify profitability. When operating in an industry where profit margins are very low, companies should pursue a tight monetary policy in order to end the financial year with profitability. Turkish Airlines carried out all growth plans according to its 2023 vision and has consequently achieved a higher growth rate compared to industrial average. The Company is constantly expanding its flight network, increasing market share in all destinations thanks to an appropriate strategy and carefully calculated rates. Turkish Airlines is distinguishing itself as a company with increasing brand value with the help of strong communications strategies and targets at high profitability. We have to note that Istanbul owns 66% of the international passenger traffic as a hub. Within 3 hours of flying distance to Turkey and Istanbul, 41 countries and 78 cities are within reach. Within 4 hours
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of flying distance, 53 countries and 118 cities; within 5 hours of flying distance 66 countries and 143 cities are accessible. In order to get our rightful share of passenger traffic we imposed our strategies successfully. Today our global market share is 2%. In 2012 Turkish Airlines had a total of 219 flight destinations (182 international and 37 domestic lines), whereas in 2013 we had flights to 245 points (202 international, 43 domestic lines) utilizing a fleet of 233 aircrafts. Turkish Airlines, operating the most comprehensive network of 105 contries worldwide, is strongly determined to countries its leadership. Our fleet size increased from 202 to 233 aircraft by the end of 2013. 265 new aircraft, which was ordered earlier, will be delivered in time. Our passenger number in 2012 of 39 million, increased by 23.6% to 48.3 million. The increase in domestic lines is 26.1% and 21.9% in international lines. Thus, Turkish Airlines successfully increased its market share to 12.8% and secured the second place among European carriers in air passenger traffic according to AEA (Association of European Airlines) data. In spite of capacity increase by 21.2%, passenger load factor increased by 1.6 pt to 79.0% in 2013, which contributed to successful turnout. Cargo and mail transportation rose in parallel to passenger increase and increased by 20.1% to 565,391 tons. When we take a closer look at the financial indicators, our sales increased by 27% over the previous year and rose to TL 18.8 billion. Our gross profit is TL 1,240 million and net profit is TL 682 million.
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If you look at diversities as a symbol of richness, if you are a determined pursuer of challenges and if you want to learn by experience; then the world is a playground. Believe in yourself and enjoy.
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Turkish Airlines has received the Skytrax “Best Airline in Europe” award for the 3rd year running. As an internationally recognized brand, executing industrial surveys independent of commercial concerns, Skytrax annually presents awards to airline companies, based on their performance.
During the 10 month survey period, airline customers from over 160 different nationalities participated in this customer satisfaction survey. By adding ‘Flying Chef ’ service for Business Class passengers on its long flights, Turkish Airlines has been also named as the winner in the category, “Best Business
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Class Catering”. While expanding our flight network, we also put emphasis on increasing quality. Crowned with Skytrax “Best Airline in Europe” award for the third time successively, we share our accomplishments with all our customers.
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AIRLINE OF THE YEAR Turkish Airlines has been named “Airline of the Year” at this year’s CAPA (Center for Asia Pacific Aviation) Aviation Awards for Excellence. The title is given to the carrier that has had the greatest impact on the development of the airline industry, establish itself as a eader and is a bench mark for other. Turkish Airlines has
established itself as a formidable competitor in a geographic region that boasts many of the world’s leading airlines. With the world’s largest flight network, Turkish Airlines flies to 200 international destinations from its Istanbul hub.
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NEW BRAND STRATEGY Turkish Airlines, with its superior service quality, offers a pleasant travel experience to everyone especially those who are brave challengers and passionate explorers. The Company’s new stance is also reflected in its brand communication. The “Widen Your World” motto is an open invitation to explore new horizons. The renewed brand strategy indicates how the Company surpasses being a
global brand. Turkish Airlines ensures maximum passenger satisfaction with the Inflight Entertainment System, containing about 400 movies, 1,000 music CD’s, radio and news channels. Furthermore, the “Invest On Board” digital platform, features entrepreneurs from all over the world matched with prominent business leaders. Live TV broadcasting via satellite are all part of the services offered in the skies.
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PASSENGER LOAD FACTOR
79.0% 1.6 pt In spite of capacity increase of 21.1%, passenger load factor increased by 1.6 p to 79.0% in 2013. 1.8 Billions 18% Turkish Airlines registered a steady profit performance for the last seven years and achieved a 17.6% EBITDAR margin.
EBITDAR USD
TOTAL PASSENGERS
48.3 Millions 24% In 2013 Turkish Airlines carried 28.2 million international and 20.1
INCOME FROM SALES
million domestic passengers; which results in a total of 48.3 million passengers.
USD 9.8 Billions 19% The sales increased by 19.3% over the previous year to USD 9.8 billion. Gross operating profit amounted to USD 657.5 million and net profit reached USD 357 million.
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Turkish Airlines, operating the world’s most comprehensive network of 105 countries; meets the expectations of its passengers by constantly introducing novelties. Its expanded and refurbished private passenger lounge, Turkish Airlines Lounge Istanbul, functions as the gate to the world; presenting a new level in pleasure and comfort. The newly added second floor of the lounge brings greater service choices to the customer. “Lounge Istanbul” was nominated to the international top 10 premium airport lounge list. This newly expanded lounge, which combines both modern and traditional design, aims to be the best.
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“Turkish Airlines Lounge Istanbul�, among the international top 10 private passenger lounges list, functions as the gate to the world; presenting a new level in pleasure, environment, and comfort.
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Turkish Airlines continues to work on its goal of acquiring the youngest and most modern fleet in Europe. The Company flies to more countries than any other airline in the world, and has the 4th largest flight network. Moreover, Turkish Airlines continues to support its fleet with new aircraft purchases. As of the end of 2013, the number of aircraft in the Turkish Airlines fleet was 233, with an average fleet age of 6.7 years. Turkish Airline’s fleet, which had consisted of 65 aircraft back in 2004, had grown by 258% to 233 aircraft in 2013. While purchasing aircraft Turkish Airlines takes into consideration the following points; changes in passenger traffic, varying customer needs, passenger comfort and safety, high technology equipment, fuel economy and environmental friendliness. Thus the Company takes important steps towards strengthening its brand. As a consequence of long term fleet projection, 20 B777-300ER and 20 A330-300 aircraft have been ordered,
which will meet the demand for long haul aircraft in the coming period. A330-300 aircraft ordered will be delivered by the end of 2016 and B777-300ER aircraft ordered will be delivered between 2014 and 2017. In 2013 a purchase order for 117 aircraft has been sent to Airbus Company, which is the largest one-time order ever placed in Turkish Civil Aviation history. The Company ordered 25 A321 CEO, 4 A320 NEO and 88 A321 NEO to meet narrow-body aircraft demand. According to plan ordered aircraft are will be taken into operation between 2015 and 2020. In addition to 117 aircraft order, a purchase order of 95 aircraft has been sent to Boing Company. The order includes 20 B737-800 NG, 65 B737-8 MAX and 10 B737-9 MAX aircraft. According to plan ordered aircraft are will be delivered between 2016 and 2021. In 2013 major airlines are went through consolidation or formed strategic alliances under cost pressure. Placing a purchase order
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for 212 aircraft reflects Turkish Airlines’ self confidence and provides assurance to its stakeholders. When compared to the existing fleet, 15% fuel economy is expected after delivery of the ordered narrow and wide body aircraft. In addition long haul aircraft will contribute positively to network extension and passenger increase. The Company updates fleet plans at the end of each year, within the scope of the following strategies: Exploiting opportunities, risk management, sustainability, dynamic capacity planning, a broadening of the flight network and increased frequency. During the year, aircraft numbers are revised according to deliveries and demand and fleet rejuvenation needs. Interim solutions are also implemented, such as using leased aircraft in light of market conditions, which does not increase fleet age or damage the integrity of aircraft.
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NEW DESTINATIONS OPEN IN 2013: COLOMBO FRIEDRICHSHAFEN LAHORE LIBREVILLE AQABA LUXEMBURG KATHMANDU MATA HOUSTON TALLINN SALZBURG ISPARTA MARSEILLE CONSTANZA ÇORLU EL KASIM VILNIUS KUALA LUMPUR SANTIAGO DE COMPOSTELA NDJAMENA IRNAK KOCAEL
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Turkish Airlines flights to 3 destinations in Africa, two in the Middle East, nine in Europe, five in the Far East and one in the USA commenced. In addition to 20 international routes, Turkish Airlines opened 6 domestic routes and added 26 new destinations to its flight map. By the end of 2013, Turkish Airlines has flown to 245 destinations, while increasing passenger numbers by 23.6% to 48.3 million. Within the next decade 100 new destinations are planned. Turkish Airlines aims at increasing the number of aircrafts to over 400 by 2020. By the end of 2013, Turkish Airlines introduced 26 new destinations and upgraded the number of flight points to 245 in 105 countries. The Company’s international destinations coverage is greater than any other airline
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in the world. Turkish Airlines added 20 new destinations in 9 countries during 2013 to widen the world of their passengers. The Company invites them to discover Aqaba and Al Qassim in Middle East, Friedrichshafen, Salzburg, Tallinn, Vilnius, Santiago de Compostela, Luxemburg, Marsilia and Malta in Europe, Colombo, Lahor, Kathmandu, Kuala Lumpur and Mazar-i Sharif in Asia, Houston in USA, N’djamena, Kano and Libreville in Africa and Constanta in the Balkans. With the new destinations offered, passengers can fly to 245 flight destinations in 105 countries. Our Company connects cities where no international connection was present before, to Turkey and many other international flight points; so that passengers can get anywhere in the world they want to.
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FINANCIAL ANALYSIS Established in 1933, Turkish Airlines’ main fields of activity are all types of domestic and international passenger and cargo air transportation. As for the shareholding structure of the Company; 50.88% are held publicly and 49.12% by the Prime Ministry, Privatization Directorate. The registered share capital of the Incorporation is TL 2 billion . The Company has 12 subsidiaries; 3 are directly owned and 9 are joint ventures. Turkish Airlines flies to 43 domestic and 202 international destination, which brings the total number to 245 destinations. Over the previous year the Company has increased 39 million passenger numbers by 23.6% and
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carried 48.3 million passengers in 2013. The number of passengers increases by 26.1% on the domestic routes and by 21.9% of international routes. According to AEA (Association of European Airlines) data Turkish Airline increased its market share to 12.8% successfully and has taken second place among European carriers as regards to air passenger traffic. Corresponding to a capacity increase of 21.2%, the passenger load factor increased by 1.6 pt to 79.0% in 2013, which contributed to turnout. Cargo and mail transportation rose in parallel to the passenger increase and grew by 20.1% to 565,391 tons.
Breakdown of passenger revenue by seat class (USD)
50.88% Other (Public)
49.12% Republic of Turkey, Prime Ministry, Privatization Administration Turkish Industry Developments & The Forecast For 2014
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Turkish Airline’s total revenue rose by 18.5% to USD 9.8 billion. In 2013, the total revenue can be divided into 89.2% resulting from passenger revenue and 8.7% from cargo revenue. When the past 5 years are taken into consideration; passenger revenue increased by 21.1% and cargo revenue by 31.6% average per year. During the same period the compound
OPERATING REVENUE 2009 4,552
2010 5,448
2011 7,070
2012 8,234
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2013 9,826
(Millions USD)
STRONG FINANCIAL PERFORMANCE (Millions USD) Summary Balance Sheet Total Assets Total Current Assets Total Non-Current Assets Total Liabilities Short Term Liabilities Long Term Liabilities Total Shareholders’ Equity
2013 11,901 2,125 9,775 11,901 3,117 5,521 3,262
2012 10,523 2,166 8,357 10,523 2,530 4,960 3,032
(%) 13 -2 17 13 23 11 8
Summary Income Statement Operating Revenue (net) Gross Profit/(Loss) Profit/Loss from Operating Activites Before Financial Income/Expense Operating Revenue Profit Before Taz Net Profit
2013 9,826 1,823 657
2012 8,234 1,1681 648
(%) 19 8 1
781 502 357
926 785 657
-16 -36 -46
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annual growth rate (CAGR) in global passenger and cargo revenues increased by 10.9% and 5.7% respectively; which is remarkably below Turkish Airlines growth rates. Increase in passenger revenues is backed up by growth in high yield industrial activities. Compared to previous year; Economy Class revenues rose 16% and Business Class revenues by 29.5% in 2013. The
Turkish Airlines evaluates the cash generation capacity of the Company by utilizing several methods. On the basis of EBITDAR the Company continues to record impressive figures. Between 2009-2013, Turkish Airlines achieved a 17.6% EBITDAR margin, when the long term target was set at 18.0%. In 2013 the Company’s EBITDAR rose by 19.3% over the previous year and reached USD 1.8 billion. IATA’s industrial forecast for operational profit margin was 3.3%. Turkish Airlines’ margin is 18%.
6.4
1% 6.5
Profit from Operating Activities
8.2
19% 9.8
(billions USD) Operating Revenue
10.5 2012
13% 11.9 2013
Total Assets
Turkish Airlines flight network extends to profound diversified geography. This fact enables a broad income portfolio for the Company. Europe is the region that has the largest part of the revenue with a 33.5% share. 14% of the total revenue originates from domestic lines; whereas, 22% of sales occurred within Turkey. Revenues derived from the Business Classes passenger segment increased consistently in parallel to Turkish Airlines’ total revenue increase. The geographically extensive flight network of Turkish Airlines has had a positive diversifying impact on the Company’s revenue generation.
(Millions USD) Net Profit Net Profit Margin EBIT EBIT Margin EBITDAR EBITDAR Margin
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2013 357 3.6% 762 7.8% 1,770
2012 657 8.0% 687 8.3% 1,483
2010 185 3.4% 362 4.8% 802
2009 362 8.0% 530 11.6% 1,038
18.0%
18.0%
14.7%
22.8%
7.17 3.81 1.75 1.61
7.91 4.00 2.16 1.75
7.92 3.49 3.00 1.43
7.94 3.63 2.96 1.36
8.46 3.84 2.95 1.65
USC 2009
CASK 2010
Other/ASK 2011
Fuel/ASK 2012
Personnel/ASK 2013
In addition to strong growth performance & high profitability, Turkish Airlines became one of the most preferred companies, with a sound financial foundation on the Istanbul Stock Exchange.
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Available Seat Km Increase 21.1% 1.8%
80.1% 79.0% Passenger Load Factor
Revenue Carge Ton Km Increase
Passenger Load Factor Increase
0.7 p. 0.4 p.
23.3% 2.1%
SECURED 2ND PLACE AMONG EUROPEAN CARRIERS IN AIR PASSENGER TRAFFIC
23.2% 2.7%
AEA THY
Revenue Passenger Km Increase
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PROFIT ORIENTED COST MANAGEMENT
Turkish Airlines operate on a considerably low unit cost basis, as a result of high utilization levels, employee productivity and effective cost management. In 2013 Personnel Cost per ASK decreased by 4.9%, therefore unit costs remained constant when compared to the previous year.
PREFERED COMPANY WITH SOUND FINANCIAL FOUNDATION According to AEA (Association of European Airlines) data Turkish Airline ropean Airlines) data Turkish Airline increased the market share to 12.8% successfully and secured the second place among European carriers in air passenger trafďŹ c.
In 2013 passenger load factor increased by 1.6 pt. The number of international transfer passenger has increased by 29% in 2013. 180 160 140 120 100 80
THYAO BIST 100
International
70.0
73.7
72.6
77.4
79.0
2009 2010 2011 2012 2013
4,445 5,147 6,249 8,991 11,615
2009 2010 2011 2012 2013
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39,040
48,268
96,124 2012
In 2013 total number of capacity increased by 21%.
Total # of Passengers (thousands)
116,433
International Transfer Passengers (thousands)
2013
Passenger Load Factor (%)
Available Seat KMs (ASK) (millions)
Domestic
In 2013 total number of passengers increased by 24%.
GDP Development Forecast (2012-2032) Annual RPK Development Forecast (2012-2032) 6.3% 4.5%
Asia Pacific
5.7% 4.4%
Africa
6.9% 4.0%
Latin America
6.3% 3.8%
Middle East
4.5% 3.4%
CIS Countries
5.0% 3.2%
World 2.7% 2.5%
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4.2% 1.8%
North America
Domestic Destinations: 43 International Destinations: 202 Total Number of Destinations: 245 Total Number of Countries: 105 Destinations Launched in 2013: 26
In 2013 a purchase order for 117 aircraft has been sent to Airbus company, which is the largest one-time order ever placed in Turkish Civil Aviation history.
In 2013 Turkish Airlines solidified its reputation as a network carrier. The Company’s profitability and double digit growth performance, which continued for the past 11 years successively, marked 2013 as well.
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and an increase in load factor are indicative of a successful year for Turkish Airlines in terms of load factor. Among AEA members Turkish Airline secured the second place in air passenger traffic. Our Company’s growth performance over the past 11 years strongly resembles that of airline companies headquartered in South America, Middle East and Far East Asia. On the other hand, the growth matrix (curve) of airline companies, operating in advanced markets that are struggling with stagnation and crisis, is fairly static. The growth trouble of European and American airlines are closely related to structural problems rather than difficulties faced in the last couple of years. Aging fleets, high labor costs, increased tax rates are the primary issues in cost management for European and American airlines. All actors in the European Union (EU) market went through hard times beyond comparison. Consolidation or state aids proved to be a life saver for the industry, where many actors stepped out of the market. Turkish Airlines gained global market visibility by continuing to grow steadily and opening up to new markets over the past decade. Geo-economic advantage, growth success and management decisions to enter new markets resulted in revenue increase and well managed costs. These on return contributed to the network and led to lower unit costs.
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2013 3.5 23.2
2012 5.3 26.6
2011 5.9 22.9
2010 8.5 19.5
2009 0 17.1
RPK Growth (%)
2013 49 91
2012 43 85
2011 37 77
(millions)
In 2013 there were increasing indications that the US economy was coming out of the crisis. As the main actor, the FED was leading expansionary policies since 2007 with USD 85 billion in monthly bond purchases in emerging markets. This year was marked by FED’s implications in the direction of slowing down and then closing the monetary expansion. Initially invented as a solution for decreasing unemployment and rejuvenating economy; this monetary expansion policy was soon turned into an instrument used for obtaining cheap money in more reliable markets that yielded higher interest rates. Following the FED decision to discontinue monetary expansion, easy obtainable credit tended to move out from emerging markets and return to its country of origin. In 2013, emerging markets were affected by by turbulence month after month. During the year attempts were made against the alarming decrease in foreign exchange reserves by utilizing instruments such as high interest and high exchange rates. The Turkish economy, on the other hand experienced a low interest rate at 4.6% in 2013; but subsequently economic and political tensions started to build up. In 2013, Turkish Airlines solidified its reputation as a network carrier. The Company’s profitability and double digit growth performance, which continued for the past 11 years successively, also marked 2013. The12 months’ figures reflect that the Company has achieved higher growth rates than set in its target budget. Both growth in domestic and international lines
2010 32 66
2009 29 59
Turkish Aviation Passenger Growth
Domestic International
World Thy
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Turkish Airline keeps track of flight demand for various destinations worldwide. In order to cater to passengers’ needs, the Company manages its flight network accordingly. In 2013 Turkish Airline offered flights to 106 countries (including Turkey) and became an airline with the largest flight network as per country number. The Company positioned itself as the largest carrier worldwide by international destination number (202 destinations) in 2013. Our Company is aware of the fact that the center of aviation industry is shifting towards East. Therefore effort is made to strengthen the flight network in Middle East, Africa and Far East regions. In Africa and Middle East region Turkish Airlines offers the highest number of pairs of arrival and departure. In Far East flights Turkish Airlines flight network is on the third place as per destination number. In order to strengthen flight network, 16 new routes and frequency increase in present routes are planned for 2014. We aim to rise number of direct and transfer passenger to maximum and to keep our operational efficiency at the highest possible level. Our Company managed to surpass other airlines in many flight points where high competition prevails and became number one choice for passengers. The main factors behind Turkish Airlines stable growth are satisfaction and trust offered to customers. The Company moves on well aware of this fact. Customer satisfaction is a critical issue at each phase of the service offered. Turkish Airlines provides a variety of choices before and during flight with the help of friendly staff. Specially designed CIP lounges offer homelike comfort before flight. Personalized menu prepared by professional cooks during flight and tea service in 42
traditional Turkish style ‘samovar’ are much appreciated by customers. On-time departure rate is over 85%. Turkish Airline has the highest on time departure performance among top 10 European Airlines. Rate of missing bags, which is an important part of customer satisfaction is decreased and kept at a low level in 2013. Successfully reaching this goal Turkish Airline is the carrier with the lowest rate of lost luggage among top 10 European Airlines. Turkish Airline won CAPA “Airline of the Year Award” thanks to superior customer satisfaction policy. The Company won Skytrax “Best Airline Europe Award” for the third time and a new award in “Best Business Class Catering”category too. Turkish Airline is determined to continue increasing service quality in the future and to enhance products through innovation and maximize customer satisfaction during their travelling experience. Turkish Airlines gained high brand awareness thanks to good quality service and extensive flight network. Today the Company strives to heighten the existing level through various projects. Turkish Airlines now invites passengers to widen their world with the newly adopted brand slogan “Widen Your World”. New slogan points to Istanbul’s linking character between two continents. It invites potential customers to fly with Turkish Airlines and introduces the Companys extending flight network to existing passengers who love discoveries and new experiences. In order to increase brand awareness and brand value, Turkish Airlines conducted social media campaigns for flights, granted several sponsorships and used celebrity advertising effectively. In consequence of these activities Turkish Airlines gained strength against
traditional airline brands with widespread reputation. Now the Company is a preferred airline globally. With each passing day Turkish Airline is coming to the forefront among airline carriers. In 2013 global average ASK ratio increased by 4.7%, whereas Turkish Airlines had 21% increase. 0.2 pt increase has been achieved with this ratio in globally offered capacity (ASK) and passenger market share. 2014 goal for capacity increase is 21%. With this goal realized, market share will increase by 0.3 pt and reach 1.9%. Capacity increase is planned along flight network strategies. Transfer and local passenger potential is also taken into consideration. Capacity increase targets are; 33% for Turkey, 29% for South America, 25% for Africa, 22% for Far East, 20% for North America, 16% for Europe and 13% for Middle East. 23% increase in passenger number is planned while balancing capacity increase with passenger load factor increase. Thus total number of 60 million passengers is set as target for 2014.In
this strength the Company works on new strategies. To sustain competitive advantage in total unit cost; saving strategies, cost cutting strategies and financial risk management strategies are implemented. Maintaining a young fleet and pursuing an efficient fuel consumption policy are other saving strategies in progress. In order to reduce sales costs various projects are designed to increase sales via direct sales channels. Regional and point target strategies, through which Turkish Airlines takes precedence of its competitors, will also be enhanced. The Company will continue to invest in technology to decrease costs, to increase efficiency and to enhance product experience as in 2013. With respect to personnel efficiency Turkish Airlines aims to preserve its existing strength by making careful plans to support increase and avoid inefficiency. The Company plans to increase aircraft efficiency by 2% and thus preserve high aircraft efficiency, which is one of the most important cost advantages
2014 as in previous years and established a structure where the Company can react to potential instabilities with the help of dynamic capacity, income management and financial risk management when necesserary. Recently capacity limits in Atatürk Airport and its negative impact on Turkish Airlines’ growth became an issue. With effective flight planning our Company will use the present capacity in the most efficient way and will include new route to its flight network and continue growth in Atatürk Airport. Turkish Airlines will perform its duty consciously in order to use Atatürk Airport’s available capacity for maximum efficiency. Sabiha Gökçen and Esenboğa based operations will be increased as well. With the new airline the Company intends to use Istanbul’s, which is one of the leading international hubs, geographical advantage more efficiently.
2013 global passenger market share was 1.5%. It will rise by 0.3 and reach 1.8% in 2014. Top airline carriers plan with 1% capacity increase in 2014. Turkish Airlines plans to grow faster than its competitors in 2014. The Company will continue to advance in top airline carriers list in 2014 like in previous year. In regard to international passengers Turkish Airlines got to 10th place in 2013. The Company owns this success to its strategy designed especially for transfer passengers and will sustain it. Turkish Airlines goal is to increase international transfer passengers in the same pace with total passengers and to attain this objective İstanbul’s adventegous geographical location will be utilized. Turkish Airlines has a noteworthy cost advantage over its competitors and in order to preserve
presently. Aircraft fuel costs stemming from fluctuations in the oil prices are controlled by using financial instruments. This is an important financial risk management strategy, implemented as part of commodity risk management. Management by process and tracking system projects are indispensible components of general management and help Turkish Airlines to gear along strategic goals in a standardized way.
passing day. Other notable industry changes to consider are; consolidations in Europe and America and strategic alliances formed in Asia and Middle East regions. Turkish Airlines’ will sustain its strengths and will use its competitive advantages against low cost carriers and airlines growing through consolidation. Our Company intends to increase its market share in the industry with low costs, operational efficiency, financial strength, well balanced growth strategy, product quality and brand recognition.
Our Company keeps an eye on the fluctuations in neighbouring regions and is always on alert for crisis management. Potential risks are incorporated in plans and income, expenses and capacity distribution is allocated accordingly to prevent damages. Turkish Airlines completed its risk plans for 43
Industrial changes increase market share of low cost carriers and competition with each
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BOARD OF DIRECTORS Hamdi Topçu Chairman of the Board and Chairman of the Executive Committee Prof. Dr. Cemal Ianlı Vice Chairman of the Board of Directors and Executive Committee Doç. Dr. Temel Kotil Member of the Board of Directors and Executive Committee, CEO Mehmet Büyükek Member of the Board and Corporate Management Committee Muzaffer Akpınar Member of the Board and Financial Audit Committee Ismail Gerçek Member of the Board, Financial Audit and Corporate Management Committee Naci Aibal Member of the Board Mehmet Nuri Yazıcı Member of the Board Prof. Dr. Mecit Ei Member of the Board
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Turkish Airlines Annual Report Designer: Amanda Clegg Publication Design Fall 2014 Paper: Mohawk Bright White Smooth & Tan Speckletone Fonts: Chalet & Garamond
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