Page 73 - TURKRptFeb20

Turkish Airlines has ended all domestics flights (except for Ankara) from Sabiha Gokcen, according to reports in local media, effectively leaving travellers with no other option but to use the city’s mega airport, Istanbul Airport, which serves as the flag carrier’s main hub.
Local media have run stories about passengers’ Istanbul Airport complaints since it became properly operational in April 2019. Critics take aim at its inconvenient location (with few public transportation links) and diverted flights, particularly during the winter season because of strong winds and unfavourable weather conditions in the area.
The distance from the airport to the city centre is around 55 kilometres and the cost of a taxi ride to Istanbul Airport is around Turkish lira 150 (€23). A new metro line between the city centre and Istanbul Airport is scheduled to open sometime in 2020.
It has been widely reported that because of the inconveniences many passengers have switched to using Sabiha Gokcen over Istanbul Airport for domestic flights.
Shares in Pegasus Airlines plunged 6% while THY shares rose 2.5% d/d on January 17.
Pegasus targeted an Ebitda margin of 22.5-23.5% for 2019, it said in January 2019. In June 2019, it revised its Ebitda margin target to 25.5-26.5%.
In January-September last year, Pegasus’ revenues increased by 16% on an annual basis to €1.3bn while its net income rose 37% to €199mn.
Turkey’s leading low-cost carrier Pegasus flies to 110 destinations in 42 countries.
The number of passengers it carried in 2019 dropped 0.3% from 2018 to 29.9mn. International passengers jumped 17.2% y/y to 13.7mn while domestic travellers dropped 11.5% y/y to 15.7mn.
Pegasus managed to increase the number of passengers it served by 7.7% in 2018 to a total of 30mn people. The domestic passenger volume rose 4.8% y/y to 17.7mn while the international passenger volume moved up 12% y/y to 11.7mn.
Pegasus operated charter flights since 1991. Following its acquisition by Esas Holding at the beginning of 2005, Pegasus changed its business model, introducing a low-cost network carrier model for the first time in Turkey. In 2013, the company held an initial public offering (IPO) to sell a 34.53% stake.
● Istanbul Airport
A consortium made up of local companies Kalyon, Cengiz, Mapa, Kolin and Limak won a tender back in 2013 to build and operate the airport.
Kalyon Insaat now owns 35% and Cengiz Insaat 25% of the airport business after Kolin Insaat sold its 20% stake earlier this year. Limak and Mapa each retain a 20% stake.
IGA, the operator of Turkey’s one-year-old mega international airport, is reportedly seeking to refinance up to €5bn ($5.6bn) in loans it used to construct the facility . A mandate awarded to London-based Dome Group is aimed at cutting the financing costs of the airport project, IGA said in a statement cited by Reuters on November 5.
The airport—which since April has replaced Istanbul Ataturk airport as
73 TURKEY Country Report OUTLOOK 2020 www.intellinews.com