FINANCIAL DATA

> January – June 2010

OPERATIONAL DATA
> January – June 2010

Disclaimer
This presentation is confidential and does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of Turkish Airlines A.O (the “Company”) or any member of its group nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of the Company or any member of its group nor shall it or any part of it form the basis of or be relied on in connection with any contract, investment decision or commitment whatsoever. This presentation has been made to you solely for your information and background and is subject to amendment. This presentation (or any part of it) may not be reproduced or redistributed, passed on, or the contents otherwise divulged, directly or indirectly, to any other person (excluding the relevant person’s professional advisers) or published in whole or in part for any purpose without the prior written consent of the Company. This presentation includes forward-looking statements. These forward-looking statements include all matters that are not historical facts, statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which the Company operates. By their nature, forward-looking statements involve risks and uncertainties, including, without limitation, the risks and uncertainties set forth in the Company’s Offering Memorandum, because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you that forward-looking statements are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and the development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. In addition, even if the Company’s results of operations, financial condition and liquidity and the development of the industry in which the Company operates are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in future periods. The Company does not undertake any obligation to review or confirm analyst expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise after the date of this presentation.

02.09.2010

2

Speakers
Temel KOTİL, Ph.D.
CEO, Turkish Airlines
› Started his Turkish Airlines career in March 2003 as Executive Vice

President (Technical) and was appointed as CEO in April 2005
› Ph.D. in Mechanical Engineering University of Michigan, USA › M.Sc. in Mechanical Engineering University of Michigan, USA › M.Sc. in Aerospace Engineering University of Michigan, USA › B.Sc. in Aerospace Engineering, Istanbul Technical University, Istanbul › Board Member of IATA, Turkish Airlines Inc, Turkish Airlines Technical

Inc.
› Chairman of the Board of Sun Express Inc.

3

Speakers
COŞKUN KILIÇ,
CFO, Turkish Airlines
› CFO as of March 2006
› M.Sc. in Finance, Urbana Champaign Illinois University, USA › M.A. Economics, Ankara University › Certified Public Accountant

› Board Member of Sun Express
› Board Member of THY Opet Havacılık Yakıtları A.S. › Auditor of THY Technic A.S.

4

1 Jan-June'10 -20.9 8.0 TK 11.3 29.7 25.9 3.5 Middle East THY vs AEA 30.3 -5.7 19.0 Europe 40.3 22.2 12.9 -0.6 11.2 20.5 11.7 3.1 -5.3 2009 AEA -6.7 AEA 4.6 10.0 3.6 35.5 0.0 Source: AEA Total %Change TK 12.3 TK Jan-June'10 10.9 2007 28.0 -5.4 AEA -6.0 0.9 1.3 11.4 AEA 22.3 -3.7 3.0 Far East .2 -4.5 2007 7.0 Jan-June'10 26.0 TK AEA 4.9 AEA TK AEA 0.5 11.4 2.9 28.0 -20.2 5.8 16.0 80.0 TK 17.6 7.0 4.3 -1.5 10.7 -0.0 40.9 TK 12.0 13.6 12.6 13.8 2008 AEA 0.5 -5.3 -0.2 -5.0 20.6 6.7 TK PAX ASK RPK 15.0 13.4 8.2 61.4 9.0 0.1 TK 18.5 18.1 4.6 -3.2 0.1 TK 5.0 30.4 22.3 19.1 19.1 15.4 TK 22.8 -4.5 7.9 2008 2009 Jan-June'10 AEA 1.5 9.7 2007 AEA 5.1 2007 AEA TK TK 2008 2008 AEA AEA TK TK 2009 2009 AEA TK AEA 0.0 4.9 19.8 26.7 6.0 30.0 15.0 54.8 55.2 0.6 3.0 20.4 0.9 1.3 24.9 AEA -0.0 40.7 -5.0 20.0 1.0 40.6 13.6 20.5 14.5 -20.0 -10.0 14.3 28.0 60.

PETERSBURG YEKATERINBURG UFA SOCHI NOVOSIBIRSK AMSTERDAM ATHENS BAKU OTHERS (30) BUCHAREST BUDAPEST CHISINAOU COPENHAGEN DUBLIN GOTEBORG HELSINKI LEFKOSE LISBON LJUBLIANA MINSK OSLO PRAG RIGA PRISTINA SARAJEVO SKOPJE SOFIA STOCKHOLM TBILISI TIRANA VIENNA ZAGREB WARSAW NAXCIVAN BASRA ERBIL SHIRAZ PODGORICA Planning for 2010 BATUM BELGRAD BRUSSELS 6 . LOS ANGELES EUROPE (70) GERMANY (9) BERLIN STUTTGART DUSSELDORF FRANKFURT HAMBURG HANNOVER COLOGNE MUNICH NUREMBERG FAR EAST (18) ALMATY ASKGABAD ASTANA BANGKOK BEIJING BISHKEK DUSHANBE HONG KONG JAKARTA KARACHI MUMBAI NEW DELHI SHANGHAI SEOUL SINGAPORE TASHKENT TOKYO OSAKA UKRAINE (6) ODESSA KIEV SIMFEROPOL DONETSK DNEPROPETROVSK LVOV U.Destinations: 127 International Lines AMERICAS (4) CHICAGO NEW YORK SAO PAULO WASHINGTON D.K. (3) LONDON MANCHESTER BIRMINGHAM FRANCE (3) PARIS NICE LYON CANADA (1) TORONTO SWITZERLAND (3) BASEL ZURICH GENEVA ITALY (4) MILAN ROME VENICE BOLOGNA AFRICA (16) ADISABABA ALGIERS BENGHAZI CAIRO CAPETOWN CASABLANCA DAKAR KHARTOUM JOHANNESBURG LAGOS NAIROBI TRIPOLI TUNUS ALEXANDRIA DAR ES SALAAM ENTEBBE ACCRA ORAN HO-CHI-MINH MIDDLE EAST (19) ABU DHABI ALEPPO AMMAN BAGHDAD BAHRAIN BEIRUT DAMASCUS DOHA DUBAI JEDDAH KUWAIT MASHAD MADINAH MUSCAT RIYADH SANAA TABRIZ TEHRAN TEL AVIV SPAIN (2) BARCELONA MADRID RUSSIA (7) MOSCOW ROSTOV KAZAN ST.C.

MARAŞ ADIYAMAN ADANA G.Destinations: 39 Domestic Lines ÇORLU İSTANBUL SİNOP İSTANBUL SAMSUN MERZİFON TRABZON ERZURUM SİVAS ERZİNCAN MUŞ AĞRI KARS ÇANAKKALE BALIKESİR BURSA ESKİŞEHİR ANKARA UŞAK İZMİR DENİZLİ BODRUM DALAMAN ANTALYA ISPARTA KONYA NEVŞEHİR KAYSERİ K.URFA HATAY 7 .ANTEP MALATYA ELAZIĞ DİYARBAKIR BATMAN MARDİN VAN Ş.

1 mn pax 11.000 25.6 mn pax 16.000 2004-73 2003.000 31.153 Aircraft 4.000 14.4 mn pax 1.9 mn pax 2008 .1 mn pax 22.6 mn pax 2010F .101 2006.1 mn pax 5.103 2.83 2007 .127 2009 .65 10.000 90 8 Destination 100 110 120 130 140 150 160 170 180 .132 3.000 19.Network Mapping Weekly Frequency 6.9 mn pax 2005.

5 9.1 11.1 76.8 4.0 1H'10 2005 2006 2007 2008 2009 1H'09 Domestic Passengers (mn) 15 10 15 11.8 20.0 8.6 73.1 50 25.8 33.6 70.9 8.8 47.1 1H'10 7.1 5.1 80 70 50 40 (Billion) 71.3 5.6 75.0 5 0 2005 9 2006 2007 2008 2009 5 0 1H'09 1H'10 2005 2006 2007 2008 2009 1H'09 (%) 50 40 20 .3 17.9 27.4 International Passengers (mn) 13.5 80 70 60 (Billion) 8.7 19% 5.2 33.1 71.1 5 7.2 73.5 9.4 18.1 30 37.3 29.Passenger Traffic Domestic ASK RPK L/F (%) International ASK RPK L/F (%) 10 73.0 3.0 10 6.5 4.9 6.4 6.2 3.4 11.3 66.9 8.8 24.2 14.4 75.4 6.9 7.1 72.7 73.3 10 0 0 2005 2006 2007 2008 2009 1H'09 1H'10 40 21.0 75.6 67.2 60 (%) 5.5 24.7 20% 5.0 5.2 10.

5% up by 19.9 70.8% up by 19.3% up by 4.5 68.1 80 72.9 68.7 72.0 points 70 60 57 30 37 34 20 42 46 RPK Passenger # ('000) L/F 40 30 25 30 25 30 0 2005 2006 2007 2008 2009 1H'09 1H'10 17 10 21 22 10 (%) 50 40 .1 THY Passenger Traffic 1H2009 vs 1H2010 Landing ASK up by 16.9% up by 26.7 73.Passenger Traffic Capacity-Traffic Development Load Factor % ASK RPK L/F % 60 50 40 (Billion) 71.

177 2.468 3.216 622 1.000 2.500 2.000 1.228 2.276 572 661 976 656 711 719 316 288 502 436 441 401 471 598 679 636 279 349 0 2005 2006 2007 2008 2009 1H'09 1H'10 2005 2006 2007 2008 2009 1H'09 1H'10 Source: Financial statements released under Turkish CMB standards.804 1.199 2.000 2.407 178 950 232 1.814 1.500 1.Revenues and Expenses Total Revenues (Mn€) Other International Domestic Total Expenses (Mn€) Other Personnel Fuel 3.518 +% 36 1.247 1.857 2.240 1.449 2.500 2.132 928 452 614 1.000 500 0 1.837 2.885 1.208 1.734 373 2. converted to € Euro using average exchange rates Able to Sustain Revenue Growth While Increasing Capacity 11 .500 3.266 1.000 +% 32 1.323 891 406 2.860 308 321 3.500 251 1.800 1.000 500 1.271 369 3.

8% Pax Revenue 87.0% Passenger Revenues Split by Geography Domestic 21% Far East 18% M. East 13% Africa 6% Other 0.Revenues.(1H ’10) Revenues Split Cargo 7.7% Europe 35% America 6% Source: Financial statements released under Turkish CMB standards. converted to € Euro using average exchange rates Passenger Revenue from Middle East and Africa regions are increasing 12 .5% Charter 4.

3% THY 60% Foreign Carriers 31% Domestic Other Turkish Carriers 9% Europe.(Jan-June’10) Int’l. 28. 10.9% Africa.3% Middle East.2% America.Passenger Breakdown. 12. Traffic Breakdown by Geography Market Shares International Far East. 2. 46.1% Other Turkish Carriers 36% THY 64% Increasing Market Share in International Traffic 13 .

53% 6.05% 2.31% 3.Market Share THY Market Share Among AEA Airlines (January-December) ASK % RPK % PAX % 10% 8.22% 4.24% 3.21% 8% 6.14% 7. fifth in ASK and sixth in RPK market share among AEA member airlines 4.90% 3.14% 4% 2% 0% 3.65% 3.56% 5.15% 5.78% 4.22% 6% 4.69% THY ranks fourth in passenger market share.91% 2005 2006 2007 2008 2009 1H'10 Source: AEA 14 .91% 5.26% 5.

000. int‟t to int‟l passengers increased by 26.0%.000.000 1.318 42% 40% 43% 38% 1.000 3. › Total transfer passengers accounted for 35.527 › THY carried total of 4.9% of the passenger traffic.0% reaching to 2.000.500.500.000 0 2005 2006 2007 2008 2009 1H'09 1H'10 1.Transfer Passengers Int’l to Int’l Transfer Passengers (2005 – 2009) 5.000 3.000 1.128.000 4.445.000 2.313. During Jan-June 2010.114 transfer passengers during JanJune 2010.814 3.841.563.180 1.254 2.500.895 4.180 Significant increase in Int’l to Int’l Transfer Passengers 15 .000.000 500.0% compared to the same period of 2009.716.000. › Int‟l to int‟l transfer passengers‟ share in total transfer passengers is 49.500.167 26% 2.000 2.313.000 4. with an increase of 16.228.133.

900 Fleet Age 5.46 › As of 18th August 2010.5 3. with an average age of 6.16 6.03 8.68 7.446 4 1. 16 .394 3 1 10 7% 70 49% 62 44% 24.55 22.248 7 5 8 5.04 4.5 5.3 18.Fleet Development Fleet as of 18th August 2010 Type A330-200 Wide Body A340 14% B777-3ER Total B737-800 B737-700 B737-400 Narrow Body A320 83% A321 A319 Total Cargo A310 TOTAL % Total 7 9 4 20 52 14 2 25 21 4 118 4 142 Financial Operational Seat Owned Lease Lease Capacity 5 2 1.962 15 6 4.7% during Jan-July 2010 compared to the same period of 2009.78 3. * 2 wet-lease aircaft is not included.596 14 1.46 years. total fleet reached to 142.506 38 13 8.34 13.3 4.986 2 300 12 13 3.3 4.022 4 528 0 65 53 19.812 7 2 2. › Seat capacity increased by 8.

6/A319-100.891 31.Fleet Development Fleet Additions of 105 Aircraft Type B777-3ER A330-300 Total B737-900ER B737-800 Narrow Body B737-700 B737-400 A321-200 A319-100 2010 5 4 9 2011 7 3 10 2 2 8 6 2012 3 3 4 5 6 2013 0 2 2 2014 0 2 1 TOTAL 12 10 22 10 10 0 0 14 6 › According to the Fleet Plan for 2009-2023.66 bn$ for the firm orders. › NB Medium-Haul:50 firm/20 optional = 70 › Firm order of.14/A321-200. Wide Body decision was made to purchase total of 105 aircraft: › WB Long-Haul: 25 firm/10 optional = 35 › 12/ B777-300ER and 10/A330 ordered.7 bn $ Year End* Fleet & Seat Capacity After Additions & Exits 2010 2011 2012 2013 2014 Fleet* 153 175 186 185 182 Seat Capacity 27. Including the options this a mount will be 2. 17 .13 left to be decided.995 34. Total TOTAL Optional Cargo TOTAL A319/A321 B737-800/900ER Total A330-200F 0 9 18 28 15 18 4 4 3 3 40 62 10 15 25 2 89 10/ B737-800 and 10/ B737-900 ER Optional order of 10 A319/A321 and 15/ B737-800/900ER.883 * Includes operational lease aircraft which are not included in the Fleet Plan of 105 aircraft.215 34.275 33. › Total PDP payment for firm orders will be 1 10 1 29 18 4 3 approximately around 1. 5 left to be decided.

respectively.000 12.26 12. › Aircraft utilization has been 1.516 1.31 12.0 Personnel efficiency is the key driven while increasing fleet size 13.0 12.644 10% 766 1H'09 841 700 200 2005 2006 2007 2008 2009 1H'10 16.00 11.Operating Efficiency 16.38 Average Daily Flight Utilization (hrs) WB Long-Haul NB Medium Haul rising in recent years due to better fleet composition and a more dynamic scheduling process.200 1. As of June 2010. 2006 2007 2008 2009 1H'09 1H'10 ASK was only €1.6% 15.072 14.40 8.606 1.000 11.26 cents for the first half of 2010.807 efficiency compared to its competitors.000 12.16 11.269 14.01 .951 Number of Personnel* 15.18 10.271 Passenger per Employee 1.323 10.32 11.121 12.0 18 2005 2006 2007 2008 2009 1H'09 10.47 1H'10 12.0 14.49 14.000 4.05 10.36 11.700 1.672 8. › Personnel cost of THY per 2005 * THY Technic Personnel is included.32 11.934 › THY enjoys high personnel 8.0 12. 1. the utilization increase in wide body and narrow body aircraft was 28% and 16%.

Cost per ASK (€ ) 1H'09 288 316 117 125 120 83 75 81 82 14 12 11 1.Operating Expenses Total Expenses (€ Mn) Fuel Personnel Sales and Marketing Rents Landing Ground handling Passenger Catering Depreciation Maintenance Others General Administration Insurance TOTAL Op.323 5.800 5. mainly due to increasing fuel costs. 19 .23 % in Total 22% 24% 9% 9% 9% 6% 6% 6% 6% 1% 1% 1% 1H'10 502 406 153 139 144 112 99 91 104 24 16 9 1.93 % in Total 28% 23% 9% 8% 8% 6% 6% 5% 6% 1% 1% 1% 10/'09 % 74% 28% 31% 12% 20% 36% 33% 12% 26% 72% 30% -16% 36% 13% Total expenses increased by 36%.

59 1.11 6.45 1.0 2. converted to € Euro using average exchange rates 20 .16 1.10 5.47 1.0 6.12 5.26 1.37 Domestic International Total 1% 7% 6% 4% 5%5% 3% 2.0 - -10% -20% -5% -5% -6% 2007 -5% -6% 2008 2009 -16% -16% -16% 1Q'10 2005 2006 2007 2008 2009 1H'10 Source: Financial statements released under Turkish CMB standards.05 5.34 1.56 1.26 1.71 6.0 4.93 20% 10% 0% 2006 1.95 5.Operating Expenses-Unit Cost Cost Per ASK (€ cent) 1H’10 CASK Personel/ASK Fuel/ASK Change in CASK(€ cent) 1Q’10 8.22 1.66 1.

09 2.7 9.15 1.67 1.Peer Group vs THY Operating Costs per ASK (€ Cent)-1H’10 15 11.6 8.62 7.S.39 3.0 5.3€cent) are based on airline business only.18 6.8 7.26 1.33 6.3 6.6 7.72 9.99 1.2 6.02 5.1 7.56 TK P.14 0.5 11. Others based on Group financials.91 2.38 2.67 2.9€cent) and SQ (Group 7.7 12.72 9.841.75 2.21 1.5 6.46 2.5 4.91 1.25 SAS AF* LH *April‟10-June‟10 (Q „10 Results ) AY IB BA* LAN CA SQ* TK SAS AF* LH AY IB BA* LAN CA SQ 0.07 7.5 2.88 2.84 7. LH (Group 12. THY is the most cost efficient among its European Peers 21 .93 Cost Per ASK (€ Cent)-1H’10 CASK Personel/ASK Fuel/ASK 10 5 0 4.9 10.84 1.62 8.22 1.5 9.5 8.5 0.

converted to € Euro using average exchange rates 22 .Financial Highlights Change in R/Y (€ cent) 1Q’10 Domestic International Total Change in RASK (€ cent) 1Q’10 20% 20% Domestic International Total 10% 5% 2% 8% 10% 6% 10% 7% 2% 7% 8% 6% 5% 3% 1% 6% 6% 5% 5% -3% 0% 2009 -14% -13% -16% 0% 2006 2008 1Q'10 -3% -3% 1% 2007 2008 2009 -16% -17% -18% 1Q'10 2006 -10% -9% 2007 -10% -20% -6% -5% -20% Source: Financial statements released under Turkish CMB standards.

4 490 17.271 260 7.2 22.5 3.8 pt 23 .1 148 8.1 235 10.3 2007 2.8 727 22.9 387 11.5 24.0 2005 2006 2007 2008 2009 1H'09 1H'10 * CAGR= Compounded Average Growth Rate (€ Euro Mn) Revenue Net Income Net Income Margin (%) EBIT EBIT Margin (%) EBITDA EBITDA Margin (%) EBITDAR EBITDAR Margin (%) EV/EBITDAR (x) 2006 2.1 541 16.0 165 11.6 15.6 11.EBITDAR Margin EBITDAR Margin % ( 1H’10) 30.1% 0.228 598 18.9 678 24.5 16.4 57 3.8 3.4 48 2.0 24.3 5.6 pt 2.4 84 6.6 pt -32% -0.3 2009 3.8 20.5 391 12.3 2008 3.857 138 7.8 802 24.0 287 15.3 pt -10% -2.5 › Increase in fuel costs had a negative impact on EBITDAR.407 48 3.0 17.5 285 10.3 10.5 366 16.734 149 5.5 14.9 1H'09 1.247 99 4.7 290 20. 20.8 548 16.1 10/'09 % 32% 190% -4.0 CAGR (2005-2009): 20.3 1H'10 1.5 4.0 pt -1% -3.

2% 1250 205 29.5% LH 9.9 5.035 1.3% 20.Peer Group vs THY EBITDAR Margin % Comparison (1H’10) 30.559 127 80 4.5% 119 5.6% 190 8.4% 346 20.1% 148 8.0 20.3% 977 181 23.875 736 -132 -2.5% SAS 2. Others based on Group Financials.486 122 209 12.3% BA 2.6% 175 1.2% 24 .7% 171 7.8% 13. * April ‟10-June ‟10.193 897 3.8% 22.0 10.477 -150 -89 -3.7 21.7% 484 8.8% 53 5. 8.0 25.S.9% AF 5. 3.2%) and SQ (Group 23%) are based on airline business only.695 1.8 22.572 -104 -342 -3.3 7.007 -50 -40 -4.5% AY 955 1.5 THY has a higher EBITDAR margin.9 22.639 1.2 15.7% -89 -3.4% 385 22.0 29. € in 1H 2010.2% 36 1.2% 17 1.327 -21 -50 -3.9% 80 4.2% CA RYR 4.0 15. 1Q‟10 Results (€ Euro Mn) Revenue Expense Net Income EBIT EBIT Margin (%) EBITDA EBITDA Margin (%) EBITDAR EBITDAR Margin (%) TK 1857 1800 138 57 3.3% 267 4.5 › Compared to its competitors.2 5.0% 287 15.5 › THY recorded profit of 138 mn.567 10.7% IB 2.9% 347 21.960 -127 -164 -8.280 2. LH (Group 8.388 2.8% 336 3.1% -113 -5.699 777 568 94 494 119 11.5% LAN 1.0 5. CA RYR* LAN SQ* TK AF* IB BA* SAS AY LH P.721 5.5 8.9% SQ 1.

THY saved 11.60 3.46 3.55 THY Fleet 1H’10 3.58) are based on airline business only. › Due to fleet expansion.854 tons of fuel and reduced CO2 Emission by 37.67 1.25 2. Fleet expansion will reduce fuel cost as well as fleet age * April‟10 June‟10.0 2.22 2.S.67 1.09 1.80 3.0 AF* BA* LAN CA LH SQ* SAS AY IB TK P.00 2.67 3. 1Q‟10 Results Source: Company annual reports & websites.56 help of its‟ young fleet and Fuel Saving Program which started in April 2008.14 2.Fuel 4.7% reduction since 2005 3.47 › THY‟s fuel expense per ASK is lower on the average compared to its peer group.20 3.341 tons.99 1.55 3. with the Fuel Cost Per ASK (€ Cent)-1H’10 3.00 3.80 2. 25 .60 2005 2006 2007 2008 2009 1H'09 1H'10 7. LH (Group 2.21) and SQ (Group 2.40 3. 0. › As of June 2010.91 1.60 3. the fleet average age will be lower which in return will increase THY‟s fuel efficiency.38 2.0 Litres/100 ASK 3. Others based on Group Financials.84 Average Specific Fuel Consumption 3.

13% › THY‟s income is diversified among the major currencies.Currency Breakdown Revenue by Currency (1H’10) Other. 11% 26 . 49% TRY. 16% EURO. 35% Expenses by Currency (1H’10) Other. 36% USD. 33% Currency exposure risk is minimized due to efficient cash management EURO. 7% USD. TRY.

(13) 38 33 99 53 51 87 36 38 14 33 50 61 28 34 19 11 52 30 49 22 55 40 27 13 36 39 19 34 1 25 22 50 29 22 27 55 73 56 76 53 59 66 50 47 53 44 37 58 42 56 46 40 55 31 43 42 31 41 44 32 49 39 43 38 32 26 34 21 12 39 48 83 44 61 59 45 51 42 67 66 42 20 78 28 84 85 43 47 37 70 30 12 25 57 29 59 60 28 16 46 48 12 22 15 41 PERF. Air France-KLM Pakistan International Airlines China Southern Airlines Co Ltd Asiana Airline Inc. China Eastern Airlies Corp. Source:Aviation Week 2010 . DATE Dec 09 Mar.O.10 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Dec 09 Mar 10 Dec 09 Dec 09 Mar 10 Dec 09 Dec 09 Dec 09 Mar 10 Dec 09 Dec 09 Dec 09 Dec 09 FINANCIAL HEALTH 80 69 64 59 59 56 53 49 46 40 39 39 38 38 36 35 34 32 32 31 30 30 29 27 25 24 24 23 23 22 21 16 13 13 1 TOTAL SCORE (8) EARNINGS LIQUIDITY(14) FUEL MGT. Qantas Airways Ltd Thai Airways International Deutsche Lufthansa AG Iberia Lineas Aereas De Espana SA Gol Linhas Aereas Inteligentes SA Sas Ab. Alaska Air Group Inc Copa Lan Airlines SA Cathay Pasific Airways Ltd TAM SA Aer Lingus Group PLc Air New Zeland Ltd Continantal Airlines Inc US Airways Group Inc.Stockholm Air Canada Finnair OYJ UAL Corp EVA Airways Corp Korean Air Lines Co. operating income margin and debt service cover. Singapore Airlines Ltd Hawaiian Holdings Inc. current ratio. Ltd. fixed-charge coverage.Ltd All Nippon Airways Co Ltd Ana Delta Air Lines Malaysian Airlines System Berhad British Airways PLC China Airlines Air China Ltd AMR Corp. mix of debt and equity capital. (14) 31 48 22 25 56 34 45 31 10 15 46 40 35 27 38 13 75 21 22 14 55 1 27 17 53 13 26 26 34 28 38 10 23 8 13 ASSET MGT.Sector Comparison SCORE RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 COMPANY Türk Hava Yolları A. (15) 32 28 31 70 42 54 50 25 1 18 31 35 21 37 1 1 23 46 1 2 39 57 48 26 15 21 1 75 54 8 1 84 7 1 35 THY ranked No.1 in the financial health* category * Representing a measure of an airline's overall financial strength based on assessments of solvency.

by passengers carried. › Included in MSCI Indices as of November 2009. › Substantial cost advantage over competitors. › Won award for the Best Airline in Southern Europe and World's Best Economy Class Onboard Catering at the 2010 World Airline Awards. Manchester United Football Club & Maroussi Basketball Club. › Member of Star Alliance. › Ranks # 4 among AEA members. › Turkey only 3hrs flight from 50 different countries › Increased focus on transit flights since 2002 › Increased focus on Business Class passengers since 2006 › Official sponsor of FC Barcelona.Company Overview › Blessed by its prime location. 28 .

Coşkun KILIÇ /+90 212-463-6363/3630 Tel: +90 212-463-6363 E-mail: ir@thy.› January – June 2009 › January – August 2009 Turkish Airlines Inc. Investor Relations Department Mr. Turkish Airlines Inc. Coşkun KILIÇ / CFO Ms.Suna ÇELEBİ/IR Manager THANKYOU YOU THANK Tel: CFO Mr.com .

destinations with › During 1H‟10 posted revenue was 144 million Euro.654 tons.Cargo Transportation TURKISH CARGO › Turkish Cargo › Leading cargo carrier in total export and import cargo in Turkey. › 30 . › Operates 22 destinations with its 4 A310-300 freighters besides 158 137 passenger aircraft. carried cargo was 151.

Cargo Revenue Cargo Revenue (€ Mn) 250 200 150 62% › Cargo revenue has increased by 62% in the first halfof 2010 compared to the same period of 2009. 160 175 179 100 50 0 201 206 2005 2006 2007 2008 2009 1H'09 89 1H'10 144 Plans to Enlarge Freighter Fleet Aiming Higher Cargo Revenues 31 .

474 114.321 2005 (Tons) 150. 87% of carried cargo was from the international segment.000 carried total of 151.000 lines is increasing over the last two years.380 2006 39. 50. 201.070 83.586 2009 0 17.000 International Domestic › Cargo carried in international 200.158 132.864 30.492 145.000 50% › As of June 2010. THY has 100.000 33.Cargo Transportation THY .404 1H'09 19.Cargo 250.653 126. indicating 50% increase compared to the same period of 2009.732 2008 36.149 161.654 tons cargo.584 1H'10 32 .073 2007 37. As of June 2010.

956 55% 80% 60% (Tons) 44% 331. which will be received in the year 2010 and 2011.890 182.974 159.116 348. 33 .040 183.873 20% 0 2005 2006 2007 2008 2009 1H'09 1H'10 0% decision made to purchase 2 Airbus cargo aircraft A330-200F.Turkish Cargo vs THY Turkish Market THY THY Market Share › THY.000 60% 57% 300.060 246.245 100. › According to the Fleet Plan.052 198.000 48% 382.480 50% 417. has increased its market share to 60% as of June 2010.284 148. having 57% market 450.572 398.722 46% share in Turkish cargo market by the end of 2009.135 150.000 144. 40% 238.

RJ70/100 trainings › Has been applying ISO 9001 Quality Management System since 1998. 34 . › Addresses the training needs of cargo and passenger agents.  Reservation › Gives training services about 10.THY Academy › THY ACADEMY( To be Established) › One of the most outstanding training centers in the › Gives training at the areas which are given below:  Technic: including Airbus. Boeing and aviation industry. universities and other airlines besides Turkish Airlines.000 people each year  Ticketing  Cargo Operations  Passenger Services  Ground Handling  Computer  Personal Development and Quality with its trainers. specialized in their areas.

› Turkish Airlines Flight Training Center offers: › Cockpit Crew Training › Cabin Crew Training › Simulators May 2006. need for new flight personnel for THY. 66 students have graduated from the Academy and started flying at Turkish Airlines. B737-800 and A320s aircraft. but also other airlines. › Currently 51 pilot candidates are given training at the Academy. B737 “Economy Class” Cabin Service Trainer(CST)B737/A310/A340 Cabin Emergency Evacuation Trainer(CEET) › Ground Training › Turkish Flight Academy 2 new simulators (Boeing 777-300ER . hours ground training. › Started training with 16 pilot candidates on › THY not only address airlines within co-partnerships. So far. certified by Type Rating › Turkish Flight Academy › Founded on November 2004 as a result of a Training Organization (TRTO) offers training in line with the standards of JAR-FCL. B737-400. › Giving 210 hours flight training and 1200 › 5 full flight simulators for RJ-100.THY Academy › THY Flight Training › Turkey's sole flight training center.A320-A330/340) will be in service as of 2010 35 . › A340 ”Business class”.

296 2.104 103 1.905 2.402 2006 197 135 241 573 1.395 2006 118 172 174 113 577 780 63 106 949 95 1.395 3.402 2005 113 161 149 332 755 540 72 249 861 110 1.882 2.395 2007 281 144 445 870 1.224 2.824 1H'10 199 320 512 355 1.488 432 2.192 70 208 1.017 36 0 0 -230 155 1.528 82 781 0 2 0 0 530 1.081 2.Balance Sheet Assets (in € Mn) Cash and Equivalents Net Trade Receivables Other Current Assets Total Current Assets Net Fixed Assets Other Long Term Assets Total Long Term Assets Total Assets Liabilities (in € Mn) Short Term Lease Obligations Accounts Payable Passenger Flight Liabilities Other Current Liabilities Total Current Liabilities Long Term Lease Obligations Retirement Pay Provision Other Long Term Liabilities Total Long Term Liabilities Share Capital* Restatement Effect Restricted Profit Reserves Differences from Currency Translation Cash Flow Hedge Fund Retained Earnings Net Profit For the Year Total Shareholders Equity Total Liabilities & Shareholders Equity 2005 304 121 95 520 1.008 2.307 67 154 1.919 4.968 2009 191 260 272 180 902 1.824 In converting the TRY reported results to EURO.386 1.180 5 0 0 -596 87 786 2.878 2008 236 163 825 1.255 1.695 2009 507 206 582 1.672 3.515 520 585 20 0 -11 592 145 1.471 405 520 11 2 -1 399 259 1.657 224 1.471 3.362 110 2.227 445 2.187 85 243 1.878 2007 132 213 222 127 694 918 77 109 1.010 4 0 0 -336 97 869 2.923 4. year-end EURO exchange rates were used 36 .968 1H'10 328 321 1.891 117 2.667 155 1.822 2.595 3.695 2008 196 203 228 146 773 1.

734 -2.271 -2.323 84 27 -63 47 -1 90 1H'10 1. the period average EURO exchange rates were used 37 .449 285 127 -6 407 9 174 2008 3.Income Statement Income Statement (in Euro mn) Operating Revenues Operating Expenses Operating Profit Income From Other Operations Loss From Other Operations Income Before Financial Income/(Expense) Income/Loss due From Asset Valuation Financial Income 2005 1.407 -1.837 391 30 -111 310 2 753 2009 3.885 387 42 -93 337 6 80 1H'09 1.860 -1.228 -2.199 48 153 -34 167 2007 2.857 -1.804 56 255 -166 145 2006 2.800 57 42 -80 19 -16 212 10/09 % 32% 36% -32% 57% 27% -60% 1083% 134% Financial Expense Monetary Gain/(Loss) Income Before Taxation Taxation Net Income -36 109 -26 83 -62 105 -6 99 -380 209 -59 149 -376 688 -90 598 -80 343 -83 260 -39 97 -50 48 -39 176 -38 138 -1% 81% -23% 190% In converting the TRY reported results to EURO.247 -2.

8 5 30 -5 Revenue (Mn.4 5.9 14.6 5. €) 170 78 185 5 Net Income (Mn.Subsidiary & Affiliates Capital (Mn. €) 11 7 -34 -2 Subsidiaries (1H 2010) THY Technic THY Do&Co Sun Express Air Bosnia THY Opet TGS GOODRICH THY TECHNIC SERVICE CENTER 38 Owned 100% 50% 50% 49% 50% 50% 40% . €) 154.6 20.7 9.

› Main goal is to become one of the biggest MRO Center in the region. › Provides maintenance services to more than 100 customers.S. posted revenues and net income was 170 mn€ and 11 mn€ respectively. the plan is to increase the airframe maintenance capacity to approximately 400 aircraft per annum. THY will be developing its technical service and maintenance business through the HABOM Project 39 . including international airlines such as Lufthansa. › During the 1H‟10. HABOM (Maintenance Repair & Overhaul Center) Project › HABOM Project will be launched by THY Technic. › THY Technic A.BA and Alitalia as well as domestic airlines. KLM. › Under HABOM.(Consolidated) › Owned 100% by THY.5 bn$ revenue from 2012 to 2022. › Total investment for the project is around 400 mn$ › Expected to generate around 6.S.Subsidiaries & Affiliates TURKISH TECHNIC A.

engine overhaul facility is planned to be comprised of approximately 25. surrounding regions and worldwide. respectively. meters located at the Sabiha Gokcen International Airport.49% by Pratt&Whitney and THY Technic. venture to establish a new company. › Established to provide engine maintenance. Turkish Engine Center.Subsidiaries & Affiliates TURKISH ENGINE CENTER › Turkish Engine Center › In 2008.000 sq. › The new environmentally efficient CFM56® and V2500 40 . repair and overhaul (MRO) services to customers located in Turkey. THY Technic and Pratt & Whitney signed a joint › Owned 51% .

. subsidiary of Goodrich Corporation.%60 by THY Technic and TSA-Rina › Established to provide the repair and overhaul for Holdings B. Thrust Reverser and Airframe Component overhaul services of high quality and efficiency available in Istanbul. Turkish Airlines and other customers from Turkish domestic market and International Market of Nacelle.V. and Airframe Components. › Estimated time for start-up business : 1Q 2011 √ 41 Components will be repaired/serviced by the company . Which is to establish an overhaul center of excellence and to offer Nacelle. › Owned 40% .Subsidiaries & Affiliates GOODRICH THY TECHNIC SERVICE CENTER Goodrich THY Technic Service Center Ltd. Thrust Reverser.

Subsidiaries & Affiliates THY DO&CO CATERING A.%50 by THY and Do & Co Restaurants & Catering A. Antalya. Dalaman and Adana. › THY Do & Co Catering A. Over 60 national and international airlines are catered from these locations. operating nine gourmet kitchens all over Turkey: Istanbul (Atatürk and Sabiha Gökcen). › During the 1H‟10.S. was 78 mn€ and 7 mn€ respectively. › Since 2007. Izmir.G.S. Ankara. Trabzon. Bodrum. posted revenues and net income 42 . (Equity Pick-up) › Owned 50% .

o. 30 mn€ and 5 mn€ respectively. and loss was 5 mn€ and 2 mn€. › Founded in 1994 as Bosnia Herzegovina‟s Registrary. › During the 1H‟10.Sarajevo (Equity Pick-up) › Owned 49% by THY. posted revenues and net loss was national airline under the name Air Bosnia. (Equity Pick-up) › Registered on August 28th.o. posted revenues 43 . 2008 to Commerce › JP`B&H Airlines`d. respectively.Subsidiaries & Affiliates › TGS Ground Handling Inc. › During the first half of 2010.

› Owned 50% . number of personnel:1. › Flies to/from 22 airports in Germany.88%. by achieving load factor of 72. will add 4 brand new Boeing 737-800s to its fleet until the end of 2010. › As of June 2010. 44 . respectively.Subsidiaries & Affiliates SUN EXPRESS › Sun Express A.50% by THY and Lufthansa. (Equity Pick-up) › Founded in October 1989 as a subsidiary company of Lufthansa and Turkish Airlines.417 › During the 1H‟10.948 passengers in 2010. › 2 brand new Boeing 737/800s have been delivered. › Fleet consisted of 24 aircraft. 3 B757 aircraft will be returned to the lessor until the end of 2010.883. 21 B737& 3 B757 aircraft with total seat capacity of 4.S. › Market leader in charter flights between Germany and Turkey. posted revenues and net loss was 185 mn€ and 51 mn€ respectively. 20 in Turkey and 45 in other countries. › Carried 2.611 as of June 2010.

45 .Subsidiaries & Affiliates THY OPET HAVACILIK YAKITLARI A. › The business activity of the established company is to supply jet fuel to any type of aircraft.S. › Start supplying jet fuel to THY for all Domestic Airports other than Sabiha Gokcen Airport as of July 1th 2010. › Owned 50% . › THY Opet Havacılık Yakıtları A.%50 by THY and OPET. Turkish Airlines established a jet fuel supply company together with local oil retailer OPET on the 18th of September 2009.S › In terms of investment on jet fuel supply.

makes informal Line Observations and investigates the occurrences and reports (mandatory/voluntary) to promote flight safety. the Quality Assurance and Flight Safety Department. Turkish Airlines is determined to keep and develop highest safety standards. Turkish Airlines is in close contact with numerous Civil Aviation Authorities and subject to their audits.035. The departments within this directorate are. Our company is an IOSA operator since 2005. provide the necessary feedback for Turkish Airlines continuous safer operations. Turkish Airlines established a quality system dedicated “to ensure safe operational practices and airworthy aeroplanes”. starting with the date of 1999. 46 . • Adoption of Safety Management System approach • Implementation of Flight Data Monitoring (FDM) system • Manage and assess the risk of flight operations • Publications to flourish a widespread culture for operational safety The Flight Safety Department that has direct access to the Accountable Manager is in charge of the management and oversight of the flight safety. Quality Management and Improvement. OHSAS 18001 Occupational Health and Safety Management System. › Quality System: In accordance with JAR OPS 1. is the key concept to consider for operations. Quality Assurance Directorate which is also reporting directly to Accountable Manager is in charge of the implementation and oversight of the quality system. Turkish Airlines has the AOC (Air Operator Certificate) approved by Turkish Civil Aviation Administration (CAA). as it would commonly be well appreciated and generally accepted. Technic. Flight Training. As a result. In addition to above all. Turkish Airlines has a quality assurance program which consists of all planned and unplanned audits that ensures all operational activities to be carried out according to all aviation requirements. Safety. These audits. Turkish Airlines adopted generic standards for quality. we are preparing ourselves to implement ICAO’s Safety Management System and Security Management System. standards and procedures. Based on the requirement JAR OPS 1.” › Flight Safety: The following have been implemented and monitored by utilizing the quality system of Turkish Airlines. ISO 27001 Data Security Management System and ISO 10002 Customer Satisfaction Management System. Ground Operations. It also implements the Flight Data Monitoring System. as well as giving the opportunity to the auditors to evaluate the current situation. 14001 Environmental Management System. In addition to the aviation sector standards. Turkish Airlines’ quality system is an integrated approach covering standards for aviation and generic systems. Flight Operations. has been inaugurated. such as ISO 9001 Quality Management System. Cabin. Accepting and implementing the standards dictated by the aviation authorities and manufacturers as the baseline.Safety & Quality In civil aviation. Due to its vast operation network. Turkish Airlines strives to attain safer operational conditions in respect to continuous development processes and appreciates this concept as a “must. having all requirements fulfilled and systems in place with regards to Turkish Civil Aviation Law. Nowadays. Thus. safety and quality supports each other and quality systems aim to maintain develop safety as a whole. It has also a continuous process that brings forward solutions and suggestions on potential non-conformities in the context of preventive action.

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