THY Actions Disturb Private Carriers
By Mustafa Gun, Zaman Daily | Sep. 10, 2006
The same competition for passengers that exists among Turkish bus companies is now appearing in the Turkish airline industry.
Private airlines are competing to attract more passengers with new promotions and scheduling flights to new provinces.
Onur Air had temporarily lowered its tickets prices to $6.
Fly Air reduced its ticket prices for Istanbul-Izmir flights to $30.Pegasus, which chose the Sabiha Gokcen Airport, located in an Istanbul suburb, as its flight hub, starts its rates from $37.
Various incentives had been offered to encourage the use of Sabiha Gokcen Airport.
Turkish Airlines (THY), known as the "big brother" by other companies in the industry, is preparing to make a move with a second company to secure its share in the domestic airlines market.
But other companies were not pleased when Turkish Express, also known as THY-2, announced it would only offer domestic flights.
'2nd Companies Not as Successful'
Private airline companies believe it is wrong for THY to hold the rates for their domestic flights low, thereby squeezing competition out of the market.
"I do not understand why it needed a second brand. This will definitely affect us negatively because it is impossible to compete against the state," Turkey Private Sector Aviation Chairman and Onur Air General Manager Sahabettin Bolukcu said.
Pegasus Airlines General Manager Sertac Haybat emphasized no company had become successful with a second brand, referring to Germany's Lufthansa or British Airways.
Pointing out that THY wished to hold their ticket prices from Sabiha Gokcen Airport at low rates, Haybat said "It should not act in this way; it should get back to its origin and be a scheduled network transporter."
Fly Air does not oppose THY-2 holding flights at low prices.
The company's General Manager Teoman Tosun said: "They have the capacity to do this better than us with their knowledge and experience. If they fly at lower rates, I say 'bravo.' However, it should be remembered that every low rate will affect others."
Meanwhile, THY sent its consolidated financial results for the first six months of 2006 to the Istanbul Stock Market.
Accordingly, THY's net profit increased by 141 percent and rose to $22 million compared with the same period in 2005.
THY's pre-tax profit increased by 242 percent and rose to $63.5 million in the same term.