This website uses cookies to ensure you have the best experience. Learn more

Turkish Airlines Essay

1245 words - 5 pages

Turkish Airlines’ has a strategic fit between target market, business model, operations strategy, and systems and implementation. Through an ambitious brand visibility strategy, prioritizing business class over first class, maintaining a cargo fleet, working from a hub and spoke system within a nexus of countries that comprises 66% of the world international air traffic, and establishing partnerships with jet fuel companies and service companies, Turkish Airlines has strategically buffeted the turbulence of the global financial crisis and made in-roads towards global prominence in the airline industry.
Brand visibility has increased due to several agreements with world renowned ...view middle of the document...


The cost per available seat kilometer (CASK) for Turkish Airlines is one of the lowest among their competitors. At 5.1 cents CASK, Turkish Airlines are able to keep this rate with low labor and fuel costs. Fuel and staff costs are the two major cost drivers of Turkish Airlines, but they’ve been able to maintain low costs for both. Regarding labor, Turkey’s labor costs have traditionally been low. And while the airlines growth and expansions have necessitated international labor recruitment, Turkish Airlines’ management has focused on staff productivity. The airline’s managers implement training for their labor, to maximize efficiency and optimize value.
And as fuel prices around the world fluctuate, negotiation and risk hedging is common among airlines. Turkish Airlines established a jet fuel supply company in a 50-50% ownership structure with a local oil retailer OPET.
One of the biggest risks for airlines is fuel costs, and the key to Turkish Airlines profitability revolves around minimizing this risk. Airlines lose money the more time they spend on the ground. Turkish Airlines’ biggest profit driver is their flight times in proportion to ground time. Once in the air, steady flying is fuel efficient. Turkish Airlines’ “averages 12 hours per day aircraft utilization,” which is much higher than their competitors.
Turkish Airlines has two main advantages over its competitors, its hub location in Istanbul and the political and socio-economic developments in Turkey. Turkish Airlines’ key to profitability is their hub and spoke airport system at a prime nexus point between CIS countries, the Middle East, and Africa. “Sixty-six percent of intercontinental air traffic in the world takes place in the Euro-Asia corridor.” Also, their Istanbul airport does not have a night curfew. Additionally, Turkish Airlines currently has a fleet of narrow body planes, which require less fuel. Since most of their flight times are 3 – 3.5 hours, they can continue with a fleet of narrow body planes. Although they face intense price competition from competitors on European routes, Turkish Airlines provides superior service compared to many of their competitors, particularly in business class. Turkey has also recently had political and socio-economic developments that will increase their profit: deregulation, a rising GDP, a growing Turkish economy, expansion of Turkish business class, and several new agreements abolishing visa requirements for Turkish passengers.
We believe it is possible for Turkish Airlines to implement a high quality/high efficiency dual strategy in an expanding network. Skytrax ranks every airline based on the delivered front-line product and service quality. To be a 5-star airline, there must be superior service to customers staring from reservation and ticketing, then arrival to the airport, through in-flight service, until departure from the final destination. Turkish Airlines has a...

Other Papers Like Turkish Airlines

Btec Level 5 Hnd Diploma in Busin

1349 words - 6 pages | |one business should be profit-making, e.g. Turkish Airlines, Tofas or Turkcell; one business should be not-for-profit, e.g. Okan University | |your two businesses should vary in size | |a description of the types of your businesses

Dskusdfsui Essay

3589 words - 15 pages airline tickets with the port of entry in Houston (IAH). Airlines that transfer in Europe include Turkish Airlines, Lufthansa, Air France, or KLM for ease in arrival to Houston. 23) How much luggage can I bring? Most airlines allow one piece of baggage (with a maximum weight of 23 kg) and one carry-on and one personal item. Be sure to check with the airline on luggage minimum/maximum. 24) What are the most important official documents I should

Turkey Vs. Taiwan

2291 words - 10 pages for that part of the population. WEAK TRANSPORTATION AND COMMUNICATION SKILLS Most people live in the western portion of Taiwan where the greatest concentration of roads and railway systems are located. These roads and railway systems are well-developed. The government-owned airline in Taiwan is China Airlines. The largest airport in Taiwan can be found outside Taipei and is the Chiang Kai-shek International Airport, with another

Green Marketing

3106 words - 13 pages 12.08 Euro per ton can be paid per person. Carbon dioxide emission per one passenger during an Istanbul-London flight reaches 29 kilograms, and with this fund, which was established on a voluntary basis, environmentally conscious passengers can donate 3.25 Euro and feel relaxed. On the other hand, Turkish Airlines has stated “we achieved fuel savings and this saving reduced carbon emission” in a statement they made in October, demonstrating that the

Contemporary Developments In Business And Management

6623 words - 27 pages providers to consumers Suppliers:   Service provider, such as airlines and other haulage contractors, hotels, tour operators for excursions, travel agencies Broker In this case, TUI AG has greater power because it has a good reputation and many suppliers depend on the business with TUI AG. Industry competitors:   Other large tour operators, such as Thomas Cook ( Frankfurt) or REWE Touristic (Cologne) Online business, agencies on the web

International Economies Theory

4241 words - 17 pages 54.73% Agricultural 7.02% Fuels and Mining 18.48% Meanwhile, service exports include traditional transportation fees charged by airlines and shipping companies, insurance fees received from foreigners, and spending by foreign tourists. In recent years new types of service trade, made possible by modern telecommunications, have drawn a great deal of media attention. The most famous example is the rise of overseas call and help centers: If

Freedom And Responsibility

2141 words - 9 pages Built within the Constitution of the United States are specifically defined freedoms that are guaranteed to all citizens. Conversely, with every constitutional freedom there comes a corresponding responsibility. On September 25, 1789, the state legislature’s twelve proposed amendments were transmitted by congress, the first two dealing with congressional representation and congressional pay. The following numbers three through twelve were

Hate Crime Laws

2348 words - 10 pages On June 7, 1998, 49-year-old James Byrd Jr. of Texas accepted a ride from three white men, who then beat him severely, urinated on him, chained him by his ankles to the back of their pick-up truck, dragged him for three miles into the countryside, and dumped his corpse in front of an African-American cemetery (Graczyk). A little over a year later, a jury sentenced ring leader John King to death by lethal injection (“Man Executed for Dragging

Rational Emotional Behavior Therapy Case Study Conceptualization And Treatment Plan

2140 words - 9 pages Rational Emotional Behavior Therapy Case Study of Sarah: A Conceptualization and Treatment Plan Rational emotive behavior therapy, REBT, was developed by Albert Ellis and holds the central belief that the events in our lives do not cause our disturbances but that they are instead caused by our view of the events (Murdock, 2009). Murdock (2009) states that “people are seen as responsible for their behavior” (p. 279) but, because they are

Holidays In Albania

1636 words - 7 pages exhibits the life of Albanians since the Illyrian time until the communism period (Howe 5). Dedicate the next visit to the Albanian official institutions, which lie along “Mother Teresa” boulevard. To proceed, Kruja is the city of the famous Skanderbeg. As it is shown in the film The Great Warrior Skanderbeg, many battles between Albanians and Turkish have taken place around the Skanderbeg castle. Therefore, this castle is worth seeing. The famous

A Heart Of Darkness

1748 words - 7 pages In this short story, there are frequent significant subject and ideas that make the story, "A Heart of Darkness," by Joseph Conrad, and haunting novel. The main theme is absolute white power over the natives. The theme validates the corruption, and the dependence caused by the white people as they took over the Congo. White men were giving all the power; they had no self-control, and in the end they did not use wisely. The white men became

Related Essays

Marketing Strategy Of Azal Essay

3533 words - 15 pages A comprehensive 7P description plan for Azerbaijan Airlines particularly focuses on its services, product differentiation, and price and customer segments to ensure airline’s survival and quality status on the available services provided by two main competitors – Aeroflot and Turkish Airlines. The objective of this individual assignment is to asses marketing information about Azerbaijan Airlines (AZAL). The task undertaken begins with marketing

Strategic Decision Marking – Singapore Airlines (Sia)

5847 words - 24 pages participate in any of the metal neutral anti-trust joint ventures which have become common in the trans-Atlantic and trans-Pacific markets and have also started to penetrate the Asia-Europe market. So far SIA only has joint ventures with two small carriers, Air New Zealand and Turkish Airlines. SIA’s other close partner, Virgin Australia, also does not serve Singapore Centre for Aviation and company reports. 2.2.3 Singapore Airlines Group

International Finance Essay

2163 words - 9 pages service is available. WIFI and aircraft the customers are able to choose a private dining menu on the internet. Golden Flight competitive market in the American airlines, Turkish Airlines, Lufthansa, and United Airlines were determined by examining the data. Input during the product life curve for the company, United Airlines and American Airlines are determined as a competitor in the airline. * American Airlines Number of passengers

Loyalty Is To Make Consumers More Dependent On Suppliers

653 words - 3 pages more special and prestigious. Simply thanking them for coming by or saying that you are very pleased to see them again could also be done. For instance, Pegasus Airlines (a Turkish airline company) started a campaign called Pegasus Plus, which gives rewards for every flight to its passengers. Costumers can use their points when they book a flight, if they have enough points they can even buy the ticket for free. The more you fly with Pegasus the