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Turkish Airlines SWOT & PESTLE Analysis

ID : 52559653| Jun 2019| 15 pages

COMPANY PROFILE -Turkish Airlines

Business Sector :Aviation

Operating Geography :Turkey, Europe, Global

About Turkish Airlines :

Turkish Airlines is the flag carrier airlines of Turkey. It was established in 1933 and has its headquarters located in Istanbul in the Turkish Airlines General Management Building on Atatürk Airport. The airlines is a member of the Star Alliance network from 2008. The airlines flies domestic as well as international routes and also carries cargo. It flies to 303 locations which is the highest number of flight destinations in the world. It is also one of the youngest fleets operating in Europe.
The airlines had started its career with only 5 aircrafts, as a part of the Ministry of National Defense. By 2018, the carrier had increased the number of aircrafts in its fleet to 329. It has been declared as Best European Airline by SkyTrax four times. In 2013, it was awarded Airline of the Year. It has over 31550 employees currently on its payroll.
The mission statement of Turkish Airlines reads “To become the preferred leading European air carrier with a global network of coverage thanks to its strict compliance with flight safety, reliability, product line, service quality and competitiveness, whilst maintaining its identity as the flag carrier of the Republic of Turkey in the civil air transportation industry.” The Airline’s vision is to become an air carrier with-
• a continued growth trend over industry average
• zero major accidents/crashes
• most envied service levels worldwide
• unit costs equating with low cost carriers
• sales and distribution costs below industry averages
• personnel constantly developing their qualifications with the awareness of the close relationship between the benefits for the company and the added value that they contribute
• an entrepreneurship that creates business opportunities for fellow members in the Star Alliance and takes advantage of the business potential provided by them
• a staff well adapted to modern governance principles by observing the best interests of not only shareholders but also stakeholders
Turkish Airline’s Unique Selling Proposition (USP) is to focus on speed and punctuality without compromising quality of service.

Turkish Airlines Revenue :

US $10,958 Million - FY March 2017 (y-o-y growth 11.9%)
US $9,792 Million - FY March 2016

Competitive Analysis of Turkish Airlines

The SWOT analysis for Turkish Airlines is presented below:
1. Record operational profitability in FY17
2. Strong focus on brand experience
3. Balanced revenue portfolio
4. Investments in service quality and brand promotions
5. Operating a young fleet
1. Limited presence in South East Asia
1. The Istanbul New Airport
2. Istanbul’s Geographical Advantage - A Natural Hub
1. Political tensions in the region
2. Violence within Turkey
3. Increasing competition from developing local airlines, as well as global giants
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Detailed SWOT Analysis of Turkish Airlines



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This section is available only in the 'Complete Report' on purchase.


1. Political tensions in the region: Backed by the government, Turkish Airlines often becomes a political sword of sorts, often causing trouble to the airlines. The recent conflict between Trump’s USA and Turkey over the detention of an American Pastor led Trump to declare new sanctions. The exchange rate of the Lira to the dollar also saw a drastic change with the Lira trading at 6.4 to a dollar- the weakest it has ever been. This is likely to effect the number of customers who will be willing to fly out of Turkey to the USA, especially as relations between the two countries continue to remain anything but friendly.
Also following the 2016 coup, Mr Erdogan was re-elected with almost authoritarian powers, causing the airline to have to work completely in line with government dictates. It is now banned from serving alcohol on its flights as well as newspapers with critical content. This affects the global brand image of the airlines, rebranding it as a conservative airline, with possible effect upon the number of clientele who choose to fly with it.

2. Violence within Turkey: A spate of bombings and bloodshed scattered across the country and around Istanbul has raised speculations about safety and security measures within the country. France has issued a warning to its citizens to “exercise great vigilance while travelling and in tourist areas”, the USA has forewarned of "increased threats from terrorist groups throughout Turkey" and while the UK has deemed Turkey as being generally safe, it has nevertheless advised its citizens to exercise added precautions when visiting the country. While Kurdish militants avoid attacking tourists, the same discrimination is not exercised by the IS who attacked the Istanbul airport in 2016, in spite of it being the country’s greatest transport hub. In fact, 2016 saw as many as 269 attacks. These events are likely to have a strong negative influence upon the number of tourists who fly to Turkey, eroding its tourist friendly image and consequently significantly reducing the profit margins of Turkish Airlines.

3. Increasing competition from developing local airlines, as well as global giants: While Turkish Airlines holds the majority share of the local market; upcoming airlines pose a potential threat. Local airlines like Pegasus, Atlasjet, and Onur airlines are slowly growing and as Turkish airlines went from a 2% share to its current 71.1% with a strong growth strategy, the possible growth of these local competitors will always remain a threat. On the global platform, Turkish Airlines has to contend with competition from long term contenders like Lufthansa, Ryanair, American Airlines, Singapore Airlines and Emirates who have high goodwill in the industry as well as strong financials.

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Check Out Analysis of Other Relevant Companies

References used in Turkish Airlines Analysis Report

1. Annual Report-

2. Turkey Recent Developments-

3. Civil War Poisoned Tukey Syria Relations-

4. Turkish Airlines and Halkbank Being Sold-

5. Turkish Airlines Expands into South East Asia-

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Turkish Airlines SWOT & PESTLE Analysis - SWOT & PESTLE.COM

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In-text: (SWOT &, 2020)

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Turkish Airlines SWOT and PESTLE analysis has been conducted and reviewed by senior analysts from Barakaat Consulting.

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Turkish Airlines SWOT & PESTLE Analysis
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