A global success story: Turkish Airlines

It is possible to say that THY creates more annual economic value for Turkey than many neighboring countries. Considering THY’s new aircraft fleet, 17.5 billion dollars of exports can be expected to double in the medium term and bring more foreign currency to the country.

Turkish Airlines (THY) has an important place in both national and global transportation. THY stands out as a global brand value with the revenue it generates, the foreign currency input it provides, the service quality it offers, the number of countries it reaches and its successful management approach. THY, the 9th airline company that carries the most passengers in the world in 2022, is preparing for the purchase of new aircraft. THY, which is preparing to compete with global giants, is one of the most successful companies in Turkey.

global crisis

Encountering a major crisis in 2020, global airline transportation went through a bad period, losing most of its revenues. However, as of mid-2021, the sector has recovered again. During this period, THY both strengthened its place in global airline transportation and rose to higher ranks with the measures it took and the investments it made.

Global comparison and THY

According to Forbes, THY ranks 8th among global airline companies in terms of total value, profit and assets. Reaching a value of 20 billion dollars, a profit of 2.8 billion dollars and a total asset of 32 billion dollars in 2023, THY left behind the airlines of countries such as China and Canada. THY, which employs more than 40 thousand people in total and has a smaller number of employees than other airlines, has achieved great success by offering more income and service quality. For example, Air Canada, the world’s 10th largest airline, reported a loss of 1.31 billion dollars despite providing 43 thousand jobs. Similarly, China Southern Airlines, which ranks 9th in the global rankings, lost 4.8 billion dollars with 100 thousand jobs. Among other airlines, there are not many companies that have the same rate of return per employment as THY. Especially compared to the developed country airlines, THY shows a more successful performance in asset management and profitability ratios. THY, which flies to nearly 130 countries in the world, distinguishes itself from many companies as one of the airlines that fly to the most countries. Although Air France, Emirates and British Airways are below THY in terms of the number of countries they fly to, it does not seem possible for them to catch up with THY. At the same time, THY, the second largest airline flying to the most destinations, appears to be in competition with airlines from countries such as the USA, China and Canada. The existence of global competition constitutes the main driving force underlying THY’s success.

Turkey’s success

In 2022, Turkey exported a total of 90 billion dollars of services. Total exports increased to 254 billion dollars. The company that exported the most in total exports, which increased to 344 billion dollars with service exports, was THY with 15.8 billion dollars. The closest company to THY was Ford Otomotiv with 6.3 billion dollars, while Turkish Petroleum Refineries followed THY and Ford Otomotiv with 4.1 billion dollars. While Turkish Airlines alone accounted for 4.6 percent of total exports, it left many economic sectors behind. The fact that THY left behind the sectors that employ millions of people in terms of profit, profit and value once again revealed the potential of the company. For example, THY, which almost doubled its mining sector exports, became the company that earned the most foreign currency per employment.

In 2023, Turkey’s total exports are expected to approach 260 billion dollars and service exports to be 120 billion dollars. Achieving a level of success as in 2022 makes it possible for THY to reach an export capacity of 17.5 billion dollars. When we evaluate the level of success achieved by THY on a country basis, we see that it has left actors such as Paraguay, Lebanon, Georgia and Kyrgyzstan behind in terms of exports alone. When evaluated in terms of total company value, it is possible to say that THY creates more annual economic value than many neighboring countries in Turkey. Considering THY’s new aircraft fleet, 17.5 billion dollars of exports can be expected to double in the medium term and bring more foreign currency to the country. It should also be taken into consideration that the expansion of THY’s aircraft fleet will provide more employment and increase the airlines’ usage rates.

How did it become a global brand?

How THY became a global brand, carrying 10.4 million passengers, 65 flights in service, a profit level of 150 million dollars and reaching 103 destinations in 2003, is one of the important achievements that should be the subject of academic research and books. Especially the increase in the number of airports in Turkey and the company’s management approach acting with a global vision have a critical position in THY’s performance. While the total number of passengers increased from 10.4 million to 48.3 million between 2003 and 2013, the level of reciprocity did not show a big jump. While the number of destinations reached increased to 243 in 2013, the current figure increased to 342 in 2022 and THY, a global brand, has gained a global presence. As a company that did not make a loss except for two years in the 2003-2023 period, THY’s performance has left many companies behind. The meaning and value expressed by THY in terms of Turkey’s corporate image goes beyond the reciprocity ratios. THY, which carries the Turkish flag to 130 countries and 342 destinations around the world, gains more importance when considered together with the tourism sector. THY’s service quality and flights are of great importance in the 54 billion dollars of tourism income that Turkey, one of Europe’s largest tourism countries, will achieve in 2023.

THY, which operates flights to 39 countries, 60 cities and 60 airports in Africa and has flights to almost every country on the continent, makes a great contribution to the African vision put forward by Turkey. THY’s contribution to Turkey-Africa relations is great in strengthening Africa’s connection with the world, increasing transportation and trade volume, and ensuring cultural rapprochement. Today, THY flights have an impact on the trade volume between Africa and Turkey, which has reached 30 billion dollars. Moreover, as a global brand, THY’s place in the recognition of Turkish companies, contracting services and tourism both on the continent and in the world is undeniable. It is possible to summarize the main reasons for the global success of the company as follows;

* Existence of stable public support and accessible airline service policy

* Adoption of company policy with a global vision

* Strengthening the airline infrastructure on a national basis

* Existence and maintenance of an approach focused on service quality

* Adoption of quality human resources policy

* The existence of competition on a global scale and Turkish Airlines’ competitive service policy.