ATW Daily News

Turkish Airlines moves closer to Star membership, projects 2006 revenue increase

Thursday November 2, 2006

Turkish Airlines President and CEO Temel Kotil told ATWOnline yesterday in Istanbul that the carrier is moving forward with preparations to join the Star Alliance and expects to achieve full membership by the fourth quarter of 2008 at the latest.

Tokil said Star will benefit from access to a Turkish market with 70 million people and Istanbul's proximity to Central Asia, the Middle East, the Far East and Africa. "We want to make Istanbul a strong hub for Star," he said. "From here we reach 85 capitals in three hours flying time."

TK, one of the fastest-growing airlines in Europe, expects to carry 17.5 million passengers in 2006, up 75% from 10 million carried in 2003. It opened 24 new routes last spring alone. But Kotil said the focus is on maintaining "quality" service. "We don't want to be the biggest carrier passengerwise, but we want to have a very good product," he explained.

To that end, next year TK is launching a new catering operation called Turkish Do & Co in conjunction with Austrian caterer Do & Co. It also plans to refurbish aircraft cabins, including investing $10 million per plane to upgrade business class cabins on seven A340-300s.

The airline plans to have a fleet of 120 aircraft by 2008, including 50 737-800s, but is in the market for "more long-haul aircraft," Kotil said. The 787 and A350 XWB will be considered, he added, noting that TK ideally would like its fleet to consist of an even split between Boeing and Airbus aircraft. It projects that its full-year 2006 revenues will total $3 billion, widened from $2.4 billion in 2005.

by Kurt Hofmann

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