Turkish Airlines CEO Temel Kotil said the carrier is investing heavily in growth as it prepares to join Star Alliance next year.

"We are adding about 20 new aircraft this year and will reach a fleet size of 100 by the end of 2007," he said.

New aircraft and onboard product upgrades are part of THY's effort to upgrade its image. It also will increase its advertising spend considerably.

Kotil said it has budgeted US$50 million for advertising this year and US$70 million in 2008. It reported revenue of US$2.83 billion in 2006.

Kotil said that investment already is paying off.

"For example, we are seeing 30% passenger growth on our routes to the Far East and are enjoying 80% load factor," he revealed, adding that transfer business is booming at the Istanbul Ataturk hub.

Transfer traffic accounts for 15% of THY's business and the number of transfer passengers has grown 20%, he said.

The airline is targeting 20 million passengers this year, up from 17 million in 2006. RPKs are expected to increase 18% against a 15% rise in capacity.

"In 2009 we will become the fourth-biggest airline in Europe in terms of passengers," he declared.