Aviation Market & Economy
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TURKISH AIRLINES June 2015 1 1 2 Aviation Market & Economy Annual GDP Growth Forecast (2013-2033) Annual RPK Growth Forecast (2013-2033) Africa 6,7% Africa 4,7% Asia Pacific 6,4% Asia Pacific 4,4% M.East 5,2% Latin America 3,9% M.East 3,8% World 5,0% CIS 3,3% Latin America 4,9% World 3,2% CIS 4,3% North America 2,5% Europe 3,5% Europe 1,9% North America 2,3% Source: Boeing Current Market Outlook Turkish Airlines Market Turkey Aviation Market Share in 2014 Domestic: 53% International: 40% 240 Total : 44% 164 151 138 160 123 111 98 106 88 98 78 90 80 65 73 59 66 52 44 80 54 59 38 43 49 21 25 29 32 2009 2010 2011 2012 2013 2014 2015E 2016E 2017E 2023E Domestic International Total Passengers (million) Note: Adjusted for double counts on domestic passenger Source: General Directorate of State Airports Authority (DHMI) 3 Turkish Airlines Growth Story 12.000 11.000 Weekly Weekly Flights 63 mn pax 10.000 54.7 mn pax 9.000 2015E - 303 48.3 mn pax 8.000 2014-261 39 mn pax 7.000 2013-233 32.6 mn pax 6.000 29.1 mn pax 2012-202 25.1 mn pax 5.000 2011 - 202 22.6 mn pax 2010 - 153 14.1 mn 2009 - 132 4.000 pax 16.9 mn pax 2008 - 127 11.9 mn 3.000 pax 2007 - 101 2006 - 103 19.7 mn pax 2005- 83 2.000 2004-73 10.4 mn pax Destinations 1.000 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 280 290 300 4 Global Market Share Gains Global Market Share Trends (in ASK) 5.0% 4.5% 4.4% 3.7% 2.7% 2.7% 2.4% 2.3% 2.2% 2.1% 2.1% 1.8% 1.8% 1.7% 1.7% 1.6% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% American United Delta Emirates Southwest China Air China Lufthansa British China Air France Qantas Turkish Cathay LATAM Ryanair Southern Eastern Airlines Pacific 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Turkish Airlines Market Share Development % of World Scheduled Traffic (ASK) 1,8% 1,6% 1,4% 1,2% 1,0% 0,9% 0,8% 0,7% 0,7% 0,6% 0,5% 0,5% 0,6% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014F Notes: For US carriers regional flights are excluded. American Airlines includes US Airways, Southwest includes AirTran, China Eastern includes Shangai Airlines and Cathay Pacific includes Dragonair. Source: 2002 ICAO, 2003-2014 IATA, company reports, sorted by 2014 ASK values 5 Istanbul’s Geographical Advantage - A Natural Hub Narrow Body Range capability to and from Istanbul With full passenger payload 777-300ER SFO 190 out of 225 international LAX YVR destinations IAH A330-200 ORD More than 40% of world-wide MEX ATL JFK YYZ NRT international traffic YUL KIX MIA IAD BOS ICN PEK CCS PVG Over 60 national capitals BOG TPE MNL CAN HKG HAN All of Europe, Middle East, Central SGN BKK DPS Asia and North and East Africa ISTANBUL HKT KUL SIN CGK Narrow Body GRU EZE MPM MRU JNB A330-300 DUR CPT Current 777-only destinations Future Wide Body destinations 6 Highest Connectivity for Europe, Africa and Middle East Airlines Connectivity Detour* Advantage by Number of O&D Pairs (Top Three) Europe to the World Turkish Airlines 16,936 British Airways 8,370 Lufthansa 8,208 From Europe To Middle East to the World Via Far East Turkish Airlines 7,557 Istanbul Qatar Airways 2,889 Lufthansa 2,380 10% Africa to the World Turkish Airlines 9,240 To 6% Air France 4,386 17% Africa British Airways 2,970 To Middle East Far East to the World United Airlines 10,990 Turkish Airlines 7,161 Delta 5,418 * Detour: Increase in the flight distance compared to a non-stop flight. Forecasted by using 6,000 arrival-departure cities Source: OAG 7 Strictly Private & Confidential 226* International, 48 Domestic Destinations in 110 Countries EUROPE AFRICA MIDDLE EAST FAR EAST 42 COUNTRIES, 104 CITIES 28 COUNTRIES, 44 CITIES 13 COUNTRIES, 34 CITIES 22 COUNTRIES, 33 CITIES Germany 364 Spain 76 Hungary 28 Moldova 7 Egypt 42 Sudan 7 Saudi Arabia 97 Lebanon 21 China 27 Afghanistan 10 Frankfurt 52 Barcelona 28 Budapest 28 Chisinau 7 Cairo 21 Khartoum 7 Jeddah 28 Beirut 21 Beijing 7 Kabul 7 Berlin 46 Madrid 21 Bulgaria 25 Poland 5 Alexandria 7 Uganda 7 Madinah 21 UAE 18 Guangzhou 7 Mazar-ı Sharif 3 Munich 46 Malaga 10 Sofia 14 Warsaw 5 Hurghada 7 Entebbe 7 Dammam 17 Dubai 14 Shanghai 7 Bangladesh 7 Stuttgart 45 Bilbao 7 Varna 11 Belarus 4 Sharmel-Sheikh 7 Burkina Faso 6 Riyadh 14 Abu Dhabi 4 Hong Kong 6 Dhaka 7 Düsseldorf 38 Valencia 7 Romania 25 Minsk 4 Algeria 35 Ougadougou 6 Yanbu 10 Jordan 17 Japan 21 Indonesia 7 Hamburg 35 Santiago de C. 3 Bucharest 21 Algiers 21 Mauritania 6 El Qassim 4 Amman 14 Tokyo 14 Jakarta 7 Cologne 28 Northern Cyprus 66 Constanta 4 Oran 7 Nouakchott 6 Taif 3 Akabe 3 Osaka 7 Maldives 7 Hanover 24 Lefkosa 66 Czech Rep. 21 Constantine 3 Senegal 6 Iran 67 Qatar 14 Kyrgyzstan 19 Male 7 Nuremberg 21 Switzerland 63 Prague 21 Tlemcen 2 Dakar 6 Tehran 33 Doha 14 Bishkek 15 Malaysia 7 Bremen 10 Zurich 28 Bosnia 18 Batna 2 Congo 5 Mashad 7 Yemen 14 Osh 4 Kuala Lumpur 7 Friedrichshafen 7 Geneva 21 Sarajevo 18 Nigeria 16 Kinshasa 5 Shiraz 7 Aden 7 Kazakhstan 15 Nepal 7 Leipzig 7 Basel 14 Finland 18 Lagos 7 Gabon 5 Tabriz 7 Sanaa 7 Almaty 10 Kathmandu 7 Münster 5 Austria 50 Helsinki 18 Abuja 5 Libreville 5 Isfahan 5 Bahrain 10 Astana 5 Singapore 7 Italy 157 Vienna 40 Norway 18 Kano 4 Niger 5 Kermanshah 4 Bahrain 10 India 14 Singapore 7 Milan 35 Salzburg 10 Oslo 18 Cameroon 14 Niamey 5 Ahvaz 4 Oman 7 Mumbai 7 Sri Lanka 7 Rome 35 Ukraine 46 Albania 14 Douala 7 Cote D'Ivore 4 Israel 56 Muscat 7 New Delhi 7 Colombo 7 Venice 25 Kiev 16 Tirana 14 Yaounde 7 Abidjan 4 Tel Aviv 56 Syria - Pakistan 14 Uzbekistan 7 Bologna 17 Odessa 11 Croatia 14 Kenya 14 Chad 4 Iraq 51 Aleppo - Karachi 7 Tashkent 7 Naples 14 Simferepol 7 Zagreb 14 Mombasa 7 N'Djamena 4 Baghdad 14 Damascus - Islamabad 4 Vietnam 7 Catania 9 Dnepropetrovsk 5 Ireland 14 Nairobi 7 Benin 4 Erbil 14 Lahore 3 Ho Chi Minh 7 Turin 7 Kherson 4 Dublin 14 South Africa 14 Cotonou 4 Basra 10 Thailand 14 Taiwan 7 Genoa 5 Lviv 3 Kosovo 14 Cape Town 7 Eritrea 3 Sulaymaniyah 8 Bangkok 14 Taipei 7 Pisa 5 Donetsk 0 Pristina 14 Johannesburg 7 Asmara 3 Najaf 5 Turkmenistan 14 Philippines 3 Future Routes Bari 5 Azerbaijan 45 Macedonia 14 Tanzania 14 Mali 3 Mosul 0 Ashgabad 14 Manila 3 France 94 Baku 35 Skopje 14 Dar Es Selaam 7 Bamako 3 Kuwait 42 Saudi Arabia South Korea 11 Mongolia 3 Paris 42 Ganja 7 Serbia 14 Kilimenjaro 7 Kuwait 42 Abha Seoul 11 Ulaanbaatar 3 Future Routes Lyon 14 Nakhichevan 3 Belgrade 14 Tunisia 14 Tajikistan 3 Nice 14 Netherlands 45 Portugal 18 Austria Tunis 14 Dushanbe 3 Marseille 10 Amsterdam 38 Lisbon 14 Graz Djibouti 7 Toulouse 7 Rotterdam 7 Porto 4 Azerbaijan Djibouti 7 AMERICAS DOMESTIC Bordeaux 7 Belgium 42 Malta 13 Lankeran Ethiopia 7 Future Routes United Kingdom 92 Brussels 42 Malta 13 Poland Addis Ababa 7 4 COUNTRIES, 11 CITIES 48 CITIES London 59 Denmark 42 Montenegro 10 Krakow Ghana 7 Angola Manchester 21 Copenhagen 28 Podgorica 10 France Accra 7 Luanda USA 61 Brazil 7 Birmingham 12 Aalborg 7 Slovenia 10 Nantes Libya 7 Egypt New York 21 Sao Paulo 7 Routes Opened in 2015 Russia 90 Billund 7 Ljublijana 10 Germany Misurata 7 Aswan Boston 7 Future Routes Moscow 42 Georgia 38 Scotland 9 Baden-Baden Benghazi - Luxor Chicago 7 Iran Philippines Sochi 10 Tbilisi 28 Edinburg 9 Kassel Sebha - Guinea Houston 7 USA Ahvaz Manila Kazan 7 Batumi 10 Estonia 7 Ukraine Tripoli - Conarky Los Angeles 7 Atlanta Nigeria Taiwan St. Petersburg 7 Greece 35 Tallinn 7 Kharkiv Morocco 7 Mozambique Washington 7 Miami Abuja Taipei Ufa 6 Athens 21 Latvia 7 Zaporizhia Casablanca 7 Maputo San Francisco 5 Cuba USA Italy Rostov 4 Thessaloniki 14 Riga 7 Spain Rwanda 7 South Sudan Canada 9 Havana San Francisco Bari Astrakhan 4 Sweden 35 Lithuania 7 La Coruna Kigali 7 Juba Toronto 6 Mexico Portugal Turkey Ekaterinburg 4 Stockholm 21 Vilnius 7 Russia Somalia 7 Montreal 3 Mexico City Porto Kocaeli Novosibirsk 3 Gothenburg 14 Luxemburg 7 Makhachkala Mogadishu 7 Argentina 7 Venezuela Ordu - Giresun Stravropol 3 Luxembourg 7 Buenos Aires 7 Caracas Tokat Uşak * As of 26.05.2015 Turkish Airlines reaches 75% of all destinations at least daily 8 Ataturk Airport Capacity Expansion and Third Airport in Istanbul • Collaborative Decision Making Project of THY-DHMI-TAV: The Third Airport • New International Terminal construction to end Q1’16 • 150 million passenger capacity • 27.000 sqm wide with 8 additional pax bridges and 32 • 4 Terminals additional check-in islands • 6 Runways • 17.000 sqm of additional car park space • 500 park positions • 76,5 km2 area • Addition of the Military Area: • 26 new park positions and new taxi ways have been added • 17 more park positions will bring up the total capacity to 145 Some Stats for Phase 1 by mid 2015 Ataturk Third • Baggage handling system capacity increase (TAV Airport Airport investment) ATMs 65 90 • Managerial Measures: Easy-pass implementation, elimination of # of Gates 63 165 security control at terminal entrance, increased x-ray and passport Aircraft per Gate (THY) 5,7 3,3 control points Pax per square meter 162 80 • Air Traffic Movements: With certain tower management measures 80 ATMs is achievable.