Turkish Airlines To Focus On Organic Growth

Titlu : Turkish Airlines To Focus On Organic Growth
Sursa : http://news.airwise.com/story/view/1271285722.html
Autor : Reuters
Data : 14/04/2010

Citat :

THY Turkish Airlines, Europe's fourth-biggest carrier, will focus on expanding its own operations to boost market share rather than acquiring a new airline, chief executive Temel Kotil said on Wednesday.

But the Istanbul-based airline has not ruled out buying another carrier, such as Serbia's JAT Airways or Poland's LOT, as it seeks to become Europe's No. 3 airline by passengers, Kotil said.

JAT chief executive Srdjan Radovanovic said last month talks with Turkish Airlines were progressing, and Polish media reported in February Turkish Airlines may be interested in buying LOT as the Polish government prepares another attempt at privatisation.

"The statements regarding JAT and Polish Airlines say something positive about us. It's true that we can create a great synergy from a merger in that region," Kotil said.

"Right now we give more priority to organic growth but we are not closed to these other matters."

Turkey's flag carrier last week said passenger numbers jumped 26 percent in March, compared with a 1 percent decline in the global sector.

The rise is due in part to long-haul flights, including new trans-Atlantic and Asian routes, and more transit passengers, Kotil said. The number of transit passengers Turkish Airlines carries could jump 40 percent this year, he said.

The company does not currently plan to revise year-end targets for passengers or revenue after having a strong first quarter but may do so in the coming months, Kotil said. It now sees 30 million passengers and USD$5.7 billion in revenue in 2010.

SECOND OFFERING

If the government decides to hold a second share offering to sell a portion of its 49 percent stake, it "would not negatively affect" the carrier, Kotil also said.

Transportation Minister Binali Yildirim said on April 7 that an additional public offering of the airline was under consideration with Turkish stocks hovering at record highs.

The government held a public offering of 25 percent of the airline in May 2006, reducing its stake to less than 50 percent.

Turkish Airlines is aggressively expanding its fleet; on long-haul planes alone, it has doubled the number of seats in the last two years. The carrier has so far placed 89 of a planned 105-aircraft order with Airbus and Boeing, orders announced in 2008.

Delivery of these planes will begin soon and no delays are expected, Kotil said.

Turkish Airlines does not plan another large-scale aircraft order in 2010, he said, but added: "This doesn't mean that this won't change by the end of the year."

The airline continues to acquire planes outside of the main order of 105 aircraft to meet its capacity targets, Kotil said. In February, it announced plans to buy 20 planes from Boeing.