AviationFlyers can reach 60 world capitals within three hours of Istanbul

Turkish Airlines is building bridges between east and west

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Turkish plans to leverage Istanbul's greatest asset: its location at the crossroads of Europe and Asia.
Turkish plans to leverage Istanbul's greatest asset: its location at the crossroads of Europe and Asia.

ISTANBUL - Turkish Airlines already flies to 126 countries, which is more than any other airline in the world. Now, buoyed by the opening in April of the massive Istanbul Airport west of the city, Turkish is moving forward with aggressive growth plans as it seeks to burnish its standing as a leading connector of international travellers between East and West.

Turkish flew 75 million passengers in 2018, nearly 3.5 times its total just a decade earlier. Among those passengers were 23.4 million travellers who were transiting between two international destinations.

But rapid as that growth sounds, the airline expects it to accelerate. Turkish is targeting a passenger count of 120 million by 2023. The carrier also plans to increase its fleet from the current 344 to approximately 500 by that time.

Turkish currently has 193 aircraft on order, according to Peter Harbison, CEO of Sydney-based CAPA Centre for Aviation consultancy.

The question: Can the carrier truly ramp up its cross-world service so quickly and still be profitable?

"It is an ambitious target, but I wouldn't rule them out from reaching it," said Mike Eggleton, director of research and intelligence for BCD Travel and a former network developer and strategist at British Airways.

To fill all those new airplanes, Turkish plans to leverage what has historically been Istanbul's greatest asset: its location at the crossroads of Europe and Asia.

"Istanbul is the centre of the world," Mert Dorman, the carrier's senior vice president of corporate marketing and distribution, said at Turkish's annual Corporate Club Conference in mid-October. He said flyers can reach 60 world capitals within three hours of Istanbul.

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The new Istanbul Airport is a crucial cog in Turkish Airlines’ push to become the world’s leading connecting carrier between East and West. Photo Credit: Robert Silk

Also central to the carrier's growth strategy is the new Istanbul Airport. The ultramodern facility opened with an annual capacity of 90 million passengers. The Turkish government, which owns 49% of Turkish Airlines, has already spent US$8.3 billion on the airport.

When the build-out is complete around 2028, capacity will be as high as 200 million passengers, and the cost is expected to have reached US$11.4 billion.

The move away from Istanbul's Ataturk Airport was a necessary one, as the facility had reached capacity. But from an airline perspective, the biggest beneficiary by far figures to be Turkish, which is responsible for 75% of the service out of Istanbul Airport, according to Ismail Polat, the airport's chief planning officer.

Armed with so much newly available capacity, Turkish plans to grow international connecting traffic more than 50% in the next five years, Mr Dorman said.

Mr Eggleton said that if Turkish is going to succeed in positioning itself as the leading option for connecting East-West international traffic, it will likely do so at the expense of Gulf competitors Emirates, Etihad and Qatar.

"In my view, the hubs that are most exposed to Istanbul are the Gulf hubs," he said. "Geographically, it's better placed than the Gulf hubs."

As an example, Eggleton cited the flight time between Beijing and London through Istanbul compared with the route through Dubai. Through Istanbul, the route has a roundtrip flight time of 800 minutes compared with 955 minutes through Dubai.

Mr Eggleton admitted that his example is purely theoretical, as it doesn't account for the crucial factors of airlines' connecting schedules as well as the ability of the airports to facilitate speedy transfers.

Still, he said, it speaks to the fact that on northern routes, which connect more high-yielding economic centres than southern routes, Turkish is better positioned than the Gulf.

Conversely, the Gulf carriers have an advantage in ferrying travellers to and from India, both for geographic and demographic reasons.

Beyond geography, the Gulf carriers, which enjoyed explosive growth early this decade, have dialled back over the past few years as they've been beset by overextension, the weakened global energy sector and a regional diplomatic dispute that has taken a particularly heavy toll on Qatar.

Looking forward, Mr Harbison said, Emirates faces the challenge of operating an all-widebody fleet, which limits its ability to service secondary markets.

He said an emerging competitor going forward for Turkish could be the discount carrier Flydubai, which has 250 737 Max aircraft on order.

For Turkish, Mr Eggleton said, geopolitics is the biggest threat to its ambitious goals for ferrying international flyers.

Tourism in Turkey crashed in 2016 following a coup attempt and a spate of terror attacks, including one at Ataturk Airport that left 48 dead, including the three attackers.

Meanwhile, recent news events have served as a reminder that the country sits precariously to the north of volatile Syria, where it is deeply involved militarily.


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