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2. STRUCTURE OF PRESENTATION
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History of Turkish Airlines
SWOT Analysis
Competitor Analysis
Turkish Airlines’ Figures/Results
Financial Risks at Turkish Airlines
Brand Value/Sponsorship
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3. HISTORY OF TURKISH AIRLINES
Turkish Airlines was founded in Ankara in 1933
First international flight was Ankara-Istanbul-Athens in
1947
The capital of Turkish Airlines was 60 million TL in
March,1956 (current capital is 1,38 billion TL)
Turkish Airlines has thrice won the Skytrax awards for
Europe's Best Airline, Southern Europe's Best Airline,
and the World's Best Premium Economy Class Airline
Seat for three consecutive years in 2011, 2012 and 2013
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6. • Strategic geographic position
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Cost Advantages
Strong Management
Customer Loyalty
Pricing Power
Supply Chain
Brand Name
Unique Products
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8. WEAKNESSES
•High Staff Turnover
•Bad Acquisitions
•Lack of Scale
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9. OPPORTUNITIES
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Emerging Markets
Fragmented Market
Innovation
Online Market
New Services
International Expansion
New Products
New Markets
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10. THREATS
•Political Risk
•Substitute Products
•Govt Regulations
•Volatile Costs
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12. COMPETITOR ANALYSIS
DOMESTIC COMPETITORS
INTERNATIONAL COMPETITORS
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14. PRODUCT LIFECYCLE
T.H.Y
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16. Figures/Results
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25. FINANCIAL RISKS AT TURKISH
AIRLINES
Financial Risk Management
 Important risks of the THY are
 Currency risk,
 Interest rate risk and
 Liquidity risk
 Financial risks related to the changes in the
exchange rate and interest rate due to its
operations.
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26. FINANCIAL RISKS AT TURKISH
AIRLINES
Financial Risk Management
Foreign currency risk management:
 THY’s income is diversified among the major currencies.
 Due to its currency basket THY is very flexible on position.
 USD income is lower than USD expenses,
 THY is able to cover its USD expenses from Euro income
 Same concept on USD/Euro is applicable to cover Turkish Lira
expenses
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27. FINANCIAL RISKS AT TURKISH
AIRLINES
Financial Risk Management
Interest rate risk management:
 THY’s debts with variable interest rate are dependent to Libor
and Euribor, dependency to local risks is low.
 THY signed interest swap contracts in order to change its
financial leasing debts from fixed interest rate to floating
interest rate.
 THY signed exchange contracts in order to change financial
leasing debts from Euro to US dollar.
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28. FINANCIAL RISKS AT TURKISH
AIRLINES
Financial Risk Management
Credit risk management:
 THY’s credit risk is basically related to its receivables.
 THY’s credit risk is dispersed and there is not important
credit risk concentration.
 THY manages the risk through obtaining guarantees for
its receivables.
Liquidity management:
 THY manages liquidity risk by maintaining adequate
reserves, banking facilities and reserve borrowing
facilities
Capital risk management:
 The capital structure of the THY consists of debt, which
includes the borrowings and equity comprising issued
capital, reserves and retained earnings.
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