Turkish Airlines Industry Analysis

Topics: Airline, Lufthansa, Turkey Pages: 3 (926 words) Published: January 4, 2011
THY has some features that makes it strong in the sector. First of all, THY charges close to a discount-airline. Secondly, it offers a business class service on both overseas and domestic flights. Moreover, THY offers a frequent flyer program (an example to this is; Miles&Smiles) Fourthly, it competes with international and domestic airlines and long distance inter-city bus services (through price cuts). Finally, THY has the best landing slots (in Istanbul & Ankara) and it is the only Turkey based international carrier. Unfortunately, THY has some weaknesses such as; acting like a legacy airline, but does not qualifying as one . Furthermore, THY is not a name brand. Thirdly, there are no strategic partnerships (high point cost per redeemed flight) (weak frequent flyer program with high costs). Also there are lack of customer orientation and lack of service culture . Finally, its fleet size is small. There are some opportunities like; THY sees itself as a competitive enterprise rather than a government agency . Secondly, THY has the confidence of financial markets , also, THY has a year or two before foreign discount airlines are allowed to fly to Istanbul and other Turkish markets . Finally, the expected rise in world airline passenger traffic can be an opportunity for THY. We can sum up the threats THY faces as 3 categories; short-term threats, medium-term threats and long-term threats. To begin with, short-Term Threats are the expansion of existing competitors and the entry of new competitors . Secondly, medium-term threat is; Istanbul, Izmir, Antalya and Ankara destinations will be available for discount routes from major European centers. Finally, long-term threats are; firstly, the European Union’s adoption of a true ‘open skies’ policy (which will lead all international carriers to enter domestic market of THY. Secondly, terorism and war fears (decrease in the amount of tourists). Lastly, low cost travelling to other destinations (from Europe) by...
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