The head of Turkish Airlines expects its growth to slow down in the Middle East as bilateral agreements with some countries in the region limit where and how often it can fly.
Temel Kotil, the chief executive of Turkish Airlines, also said that his strategy is to focus on “organic growth” – a year after talks of a potential merger with Lufthansa have fallen apart.
In an effort to boost growth, the Turkish carrier plans to spend US$200 million in advertising next year, or the equivalent of 2 per cent of its budget.
“It looks that the Middle East growth will be less, as we are limited in the frequencies and cities that we fly to,” said Mr Kotil, adding that growth from the Middle East was at an average of 17 per cent over the past 10 years.
He declined to specify which countries’ bilateral arrangement were limiting his airline.
However, he did specify where turmoil at street level is limiting the airline’s reach.
Mr Kotil said that geopolitical challenges in the region had prevented Turkish Airlines from flying to Syria for the past three years. The airline has also stopped flying to Mosul in Iraq. And in Libya, it flies only to the city of Misurata, after it stopped flying to Tripoli and Benghazi.
But those are not a major problem, he said.
“The business is not affected by these destinations, because we are a large airline and we fly to 216 international cities,” said Mr Kotil.
The UAE’s General Civil Aviation Authority did not reply to a request to comment on Mr Kotil’s observations.
International flights constitute a majority of income at Turkish Airlines, and domestic flights make up only 14 per cent. The carrier’s biggest market is Europe; followed by the Far East; then the Middle East and North Africa; and then the Americas.
For Turkish Airlines, being a member of Star Alliance limits its ability to make codeshare arrangements with Middle Eastern carriers.
“Saudi Airlines has a different alliance, Qatar Airways has a different alliance, Air Jordan [Royal Jordanian] is also part of a different alliance, which makes it very hard to codeshare,” said Mr Kotil.
Mr Kotil, who in his 10 years leading Turkish Airlines has overseen growth in its revenue to $11.6 billion a year from $1.8bn, said that his primary strategy is to grow solo.
“We stick on the organic growth. We have 1,200 flights per day, we need to bring them to 2,000 by 2020. This is a big challenge,” he said. “I am very busy with the growth. I have no time for other airlines or joint ventures, or other issues.”
selgazzar@thenational.ae
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Roll of honour: Who won what in 2018/19?
West Asia Premiership: Winners – Bahrain; Runners-up – Dubai Exiles
UAE Premiership: Winners – Abu Dhabi Harlequins; Runners-up – Jebel Ali Dragons
Dubai Rugby Sevens: Winners – Dubai Hurricanes; Runners-up – Abu Dhabi Harlequins
UAE Conference: Winners – Dubai Tigers; Runners-up – Al Ain Amblers
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
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BMW M5 specs
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Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
UAE currency: the story behind the money in your pockets
Why seagrass matters
- Carbon sink: Seagrass sequesters carbon up to 35X faster than tropical rainforests
- Marine nursery: Crucial habitat for juvenile fish, crustations, and invertebrates
- Biodiversity: Support species like sea turtles, dugongs, and seabirds
- Coastal protection: Reduce erosion and improve water quality
How Apple's credit card works
The Apple Card looks different from a traditional credit card — there's no number on the front and the users' name is etched in metal. The card expands the company's digital Apple Pay services, marrying the physical card to a virtual one and integrating both with the iPhone. Its attributes include quick sign-up, elimination of most fees, strong security protections and cash back.
What does it cost?
Apple says there are no fees associated with the card. That means no late fee, no annual fee, no international fee and no over-the-limit fees. It also said it aims to have among the lowest interest rates in the industry. Users must have an iPhone to use the card, which comes at a cost. But they will earn cash back on their purchases — 3 per cent on Apple purchases, 2 per cent on those with the virtual card and 1 per cent with the physical card. Apple says it is the only card to provide those rewards in real time, so that cash earned can be used immediately.
What will the interest rate be?
The card doesn't come out until summer but Apple has said that as of March, the variable annual percentage rate on the card could be anywhere from 13.24 per cent to 24.24 per cent based on creditworthiness. That's in line with the rest of the market, according to analysts
What about security?
The physical card has no numbers so purchases are made with the embedded chip and the digital version lives in your Apple Wallet on your phone, where it's protected by fingerprints or facial recognition. That means that even if someone steals your phone, they won't be able to use the card to buy things.
Is it easy to use?
Apple says users will be able to sign up for the card in the Wallet app on their iPhone and begin using it almost immediately. It also tracks spending on the phone in a more user-friendly format, eliminating some of the gibberish that fills a traditional credit card statement. Plus it includes some budgeting tools, such as tracking spending and providing estimates of how much interest could be charged on a purchase to help people make an informed decision.
* Associated Press
About Proto21
Date started: May 2018
Founder: Pir Arkam
Based: Dubai
Sector: Additive manufacturing (aka, 3D printing)
Staff: 18
Funding: Invested, supported and partnered by Joseph Group
Company%20Profile
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MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
The years Ramadan fell in May
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Transmission: seven-speed automatic
Power: 400hp
Torque: 560Nm
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