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

7 25.2 20.6 13.0 4.4 0.0 30.3 -5.5 0.7 6.9 2008 2009 Jan-June'10 AEA 1.0 13.3 -0.5 11.0 80.0 20.2 0.1 15.1 -5.3 29.5 -5.5 Middle East THY vs AEA 30.1 Jan-June'10 -20.6 -3.0 54.6 13.0 TK AEA 4.9 1.5 10.9 AEA TK AEA 0.9 1.0 1.0 TK 17.0 40.0 Source: AEA Total %Change TK 12.0 30.5 18.3 2009 AEA -6.4 2.1 TK 18.7 19.5 11.3 22.0 20.0 3.3 28.0 -20.2 12.6 6.8 2008 AEA 0.4 8.7 3.0 40.3 11.9 -0.9 2007 28.3 -1.0 15.8 26.3 TK Jan-June'10 10.3 24.4 9.4 AEA -6.8 -4.1 2007 AEA TK TK 2008 2008 AEA AEA TK TK 2009 2009 AEA TK AEA 0.6 11.3 -3.7 -5.2 0.0 Jan-June'10 26.5 9.7 AEA 4.3 19.7 2007 AEA 5.2 -5.0 14.6 7.5 -20.6 10.4 22.5 7.0 13.6 12.0 TK 11.8 16.1 TK 5.9 3.5 2007 7.0 -5.1 4.6 20.6 35.0 Europe 40.0 60.6 3.5 14.8 55.4 AEA 22.0 40.7 TK PAX ASK RPK 15.0 -10.9 28.7 3.2 5.0 0.9 AEA -0.2 -4.4 TK 22.0 20.9 8.0 Far East .1 19.9 19.7 -0.9 TK 12.2 61.0 0.0 4.

C. 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.K.Destinations: 127 International Lines AMERICAS (4) CHICAGO NEW YORK SAO PAULO WASHINGTON D.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 . (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.

URFA HATAY 7 .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.MARAŞ ADIYAMAN ADANA G.ANTEP MALATYA ELAZIĞ DİYARBAKIR BATMAN MARDİN VAN Ş.

153 Aircraft 4.1 mn pax 22.000 31.000 19.132 3.65 10.000 25.1 mn pax 11.000 2004-73 2003.000 90 8 Destination 100 110 120 130 140 150 160 170 180 .Network Mapping Weekly Frequency 6.9 mn pax 2008 .127 2009 .4 mn pax 1.83 2007 .9 mn pax 2005.6 mn pax 2010F .000 14.6 mn pax 16.1 mn pax 5.103 2.101 2006.

4 6.2 73.3 66.7 20% 5.7 19% 5.4 International Passengers (mn) 13.5 24.3 29.5 4.1 76.6 73.1 50 25.6 67.0 5.1 5 7.9 6.1 5.8 4.0 8.1 72.6 75.0 75.0 10 6.1 80 70 50 40 (Billion) 71.0 1H'10 2005 2006 2007 2008 2009 1H'09 Domestic Passengers (mn) 15 10 15 11.Passenger Traffic Domestic ASK RPK L/F (%) International ASK RPK L/F (%) 10 73.1 1H'10 7.9 8.9 7.8 47.8 20.1 30 37.1 71.4 75.7 73.1 11.3 17.9 27.2 60 (%) 5.8 33.2 14.2 33.5 9.9 8.4 6.0 5 0 2005 9 2006 2007 2008 2009 5 0 1H'09 1H'10 2005 2006 2007 2008 2009 1H'09 (%) 50 40 20 .5 80 70 60 (Billion) 8.2 10.0 3.8 24.3 10 0 0 2005 2006 2007 2008 2009 1H'09 1H'10 40 21.6 70.4 18.5 9.2 3.3 5.4 11.

Passenger Traffic Capacity-Traffic Development Load Factor % ASK RPK L/F % 60 50 40 (Billion) 71.3% up by 4.9 70.5 68.7 73.7 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 16.5% up by 19.9 68.1 80 72.8% up by 19.9% up by 26.

216 622 1.Revenues and Expenses Total Revenues (Mn€) Other International Domestic Total Expenses (Mn€) Other Personnel Fuel 3.857 2.804 1.449 2.518 +% 36 1.814 1.132 928 452 614 1.885 1.500 2.247 1.208 1.271 369 3.000 500 0 1.860 308 321 3.800 1.323 891 406 2. converted to € Euro using average exchange rates Able to Sustain Revenue Growth While Increasing Capacity 11 .177 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.500 3.199 2.266 1.000 2.000 +% 32 1.407 178 950 232 1.000 500 1.734 373 2.500 2.240 1.000 2.228 2.000 1.500 1.468 3.837 2.500 251 1.

5% Charter 4.7% Europe 35% America 6% Source: Financial statements released under Turkish CMB standards.(1H ’10) Revenues Split Cargo 7. converted to € Euro using average exchange rates Passenger Revenue from Middle East and Africa regions are increasing 12 .8% Pax Revenue 87.Revenues. East 13% Africa 6% Other 0.0% Passenger Revenues Split by Geography Domestic 21% Far East 18% M.

3% Middle East. 10.2% America.Passenger Breakdown.3% THY 60% Foreign Carriers 31% Domestic Other Turkish Carriers 9% Europe. 46.1% Other Turkish Carriers 36% THY 64% Increasing Market Share in International Traffic 13 . 12. 2. 28.9% Africa. Traffic Breakdown by Geography Market Shares International Far East.(Jan-June’10) Int’l.

90% 3.53% 6.69% THY ranks fourth in passenger market share.14% 4% 2% 0% 3.78% 4.21% 8% 6.26% 5.Market Share THY Market Share Among AEA Airlines (January-December) ASK % RPK % PAX % 10% 8.14% 7.22% 4.24% 3.56% 5. fifth in ASK and sixth in RPK market share among AEA member airlines 4.05% 2.22% 6% 4.65% 3.31% 3.91% 2005 2006 2007 2008 2009 1H'10 Source: AEA 14 .91% 5.15% 5.

000 2.000 2.000 4.000 500.500.000.0% compared to the same period of 2009.114 transfer passengers during JanJune 2010.000 1.500.000 4. int‟t to int‟l passengers increased by 26.000.445. with an increase of 16.895 4.563.500.313. During Jan-June 2010.Transfer Passengers Int’l to Int’l Transfer Passengers (2005 – 2009) 5.000 0 2005 2006 2007 2008 2009 1H'09 1H'10 1.128.313.133.527 › THY carried total of 4.167 26% 2.0%.500.000.180 1.000.716. › Int‟l to int‟l transfer passengers‟ share in total transfer passengers is 49.000 3.000.000 1.180 Significant increase in Int’l to Int’l Transfer Passengers 15 .9% of the passenger traffic.228.0% reaching to 2.841. › Total transfer passengers accounted for 35.254 2.000 3.318 42% 40% 43% 38% 1.814 3.

16 .03 8.68 7.3 4.986 2 300 12 13 3.506 38 13 8.04 4.394 3 1 10 7% 70 49% 62 44% 24.7% during Jan-July 2010 compared to the same period of 2009.248 7 5 8 5.78 3.5 5.022 4 528 0 65 53 19.3 4.34 13.900 Fleet Age 5.812 7 2 2.596 14 1.46 years. total fleet reached to 142.16 6. with an average age of 6.5 3.446 4 1.962 15 6 4.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. › Seat capacity increased by 8.46 › As of 18th August 2010.55 22.3 18. * 2 wet-lease aircaft is not included.

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. 17 .995 34.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 2009-2023.883 * Includes operational lease aircraft which are not included in the Fleet Plan of 105 aircraft.891 31.275 33.66 bn$ for the firm orders. Including the options this a mount will be 2. 5 left to be decided.215 34.13 left to be decided. 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.7 bn $ Year End* Fleet & Seat Capacity After Additions & Exits 2010 2011 2012 2013 2014 Fleet* 153 175 186 185 182 Seat Capacity 27. 6/A319-100. › NB Medium-Haul:50 firm/20 optional = 70 › Firm order of.14/A321-200. › Total PDP payment for firm orders will be 1 10 1 29 18 4 3 approximately around 1.

0 Personnel efficiency is the key driven while increasing fleet size 13.38 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.6% 15.200 1.40 8.700 1.072 14.323 10.0 12.Operating Efficiency 16.36 11. 2006 2007 2008 2009 1H'09 1H'10 ASK was only €1. 1. the utilization increase in wide body and narrow body aircraft was 28% and 16%. › Personnel cost of THY per 2005 * THY Technic Personnel is included.269 14. As of June 2010.0 14.951 Number of Personnel* 15.26 12.000 11.0 12.516 1.000 12.271 Passenger per Employee 1.00 11.934 › THY enjoys high personnel 8.0 18 2005 2006 2007 2008 2009 1H'09 10.32 11.31 12.606 1.121 12.32 11.47 1H'10 12.26 cents for the first half of 2010. › Aircraft utilization has been 1.807 efficiency compared to its competitors.01 .000 12.16 11.49 14.000 4.672 8.18 10. respectively.05 10.644 10% 766 1H'09 841 700 200 2005 2006 2007 2008 2009 1H'10 16.

Cost per ASK (€ ) 1H'09 288 316 117 125 120 83 75 81 82 14 12 11 1.800 5.23 % 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.Operating Expenses Total Expenses (€ Mn) Fuel Personnel Sales and Marketing Rents Landing Ground handling Passenger Catering Depreciation Maintenance Others General Administration Insurance TOTAL Op. 19 .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%. mainly due to increasing fuel costs.323 5.

26 1. converted to € Euro using average exchange rates 20 .22 1.56 1.11 6.37 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.0 6.0 4.16 1.47 1.34 1.71 6.12 5.10 5.0 2.95 5.Operating Expenses-Unit Cost Cost Per ASK (€ cent) 1H’10 CASK Personel/ASK Fuel/ASK Change in CASK(€ cent) 1Q’10 8.45 1.59 1.66 1.93 20% 10% 0% 2006 1.26 1.05 5.

THY is the most cost efficient among its European Peers 21 .6 7.9 10.5 0.91 2.67 1.84 7.5 2.91 1.3€cent) are based on airline business only.99 1.62 7.5 6.56 TK P.14 0.5 9.6 8.7 12.02 5.46 2.18 6. LH (Group 12.26 1.72 9.2 6.8 7.72 9.1 7.5 11.841.21 1.Peer Group vs THY Operating Costs per ASK (€ Cent)-1H’10 15 11.S.62 8.3 6.07 7. Others based on Group financials.22 1.5 4.5 8.9€cent) and SQ (Group 7.15 1.93 Cost Per ASK (€ Cent)-1H’10 CASK Personel/ASK Fuel/ASK 10 5 0 4.0 5.33 6.09 2.38 2.88 2.75 2.25 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 0.84 1.39 3.67 2.7 9.

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. converted to € Euro using average exchange rates 22 .

271 260 7.5 285 10.8 pt 23 .5 3.6 pt -32% -0.3 10.6 11.9 678 24.0 17.4 48 2.4 84 6.6 pt 2.9 1H'09 1.6 15.5 14.0 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 2.5 16.0 24.857 138 7.EBITDAR Margin EBITDAR Margin % ( 1H’10) 30.1 235 10.8 3.5 4.407 48 3.0 287 15.8 20.7 290 20.0 165 11.3 5.9 387 11.1% 0.228 598 18.8 548 16.3 2008 3. 20.0 pt -1% -3.5 366 16.3 1H'10 1.3 pt -10% -2.734 149 5.5 24.5 391 12.1 541 16.0 CAGR (2005-2009): 20.8 802 24.4 57 3.3 2009 3.2 22.5 › Increase in fuel costs had a negative impact on EBITDAR.4 490 17.3 2007 2.247 99 4.1 148 8.8 727 22.1 10/'09 % 32% 190% -4.

7 21.5% SAS 2.5% LH 9. Others based on Group Financials.6% 190 8. 1Q‟10 Results (€ Euro Mn) Revenue Expense Net Income EBIT EBIT Margin (%) EBITDA EBITDA Margin (%) EBITDAR EBITDAR Margin (%) TK 1857 1800 138 57 3.5 › THY recorded profit of 138 mn.193 897 3. CA RYR* LAN SQ* TK AF* IB BA* SAS AY LH P.639 1.7% -89 -3.0 15.0 25.4% 385 22.721 5.559 127 80 4.388 2.1% -113 -5.Peer Group vs THY EBITDAR Margin % Comparison (1H’10) 30.9% SQ 1. 8.0 5.567 10.2% 17 1.4% 346 20.699 777 568 94 494 119 11.5 THY has a higher EBITDAR margin.2%) and SQ (Group 23%) are based on airline business only.486 122 209 12.0% 287 15.007 -50 -40 -4.3% BA 2.2 5.3% 977 181 23.572 -104 -342 -3.7% 484 8.2% 24 .8% 13.1% 148 8.7% IB 2.0 10.9% AF 5.7% 171 7.5% AY 955 1. 3.3% 267 4.9 5. LH (Group 8.8 22.9% 347 21.8% 336 3.695 1.8% 22.3 7.2% 1250 205 29.8% 53 5.5 8.0 20.875 736 -132 -2.3% 20. € in 1H 2010.2 15.9 22.960 -127 -164 -8.6% 175 1. * April ‟10-June ‟10.477 -150 -89 -3.0 29.280 2.2% 36 1.9% 80 4.327 -21 -50 -3.S.2% CA RYR 4.5 › Compared to its competitors.035 1.5% 119 5.5% LAN 1.

› Due to fleet expansion.38 2.09 1. 25 .25 2.40 3.00 3. › As of June 2010.60 2005 2006 2007 2008 2009 1H'09 1H'10 7.55 3.60 3. with the Fuel Cost Per ASK (€ Cent)-1H’10 3. THY saved 11.80 2.58) are based on airline business only.21) and SQ (Group 2.0 2. Others based on Group Financials.46 3.0 AF* BA* LAN CA LH SQ* SAS AY IB TK P.22 2.67 1.67 1.7% reduction since 2005 3.80 3.S. 1Q‟10 Results Source: Company annual reports & websites. the fleet average age will be lower which in return will increase THY‟s fuel efficiency.67 3.84 Average Specific Fuel Consumption 3.47 › THY‟s fuel expense per ASK is lower on the average compared to its peer group.00 2. Fleet expansion will reduce fuel cost as well as fleet age * April‟10 June‟10.55 THY Fleet 1H’10 3.Fuel 4.56 help of its‟ young fleet and Fuel Saving Program which started in April 2008. LH (Group 2.14 2.91 1.99 1.20 3. 0.854 tons of fuel and reduced CO2 Emission by 37.0 Litres/100 ASK 3.60 3.341 tons.

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

Ltd All Nippon Airways Co Ltd Ana Delta Air Lines Malaysian Airlines System Berhad British Airways PLC China Airlines Air China Ltd AMR Corp. Ltd.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. (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. operating income margin and debt service cover. 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. (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.O. Source:Aviation Week 2010 . China Eastern Airlies Corp. current ratio.Stockholm Air Canada Finnair OYJ UAL Corp EVA Airways Corp Korean Air Lines Co. DATE Dec 09 Mar. mix of debt and equity capital.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.1 in the financial health* category * Representing a measure of an airline's overall financial strength based on assessments of solvency. Qantas Airways Ltd Thai Airways International Deutsche Lufthansa AG Iberia Lineas Aereas De Espana SA Gol Linhas Aereas Inteligentes SA Sas Ab. Air France-KLM Pakistan International Airlines China Southern Airlines Co Ltd Asiana Airline Inc. fixed-charge coverage. (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. Singapore Airlines Ltd Hawaiian Holdings Inc.

› Substantial cost advantage over competitors. Manchester United Football Club & Maroussi Basketball Club. › 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. › Included in MSCI Indices as of November 2009.Company Overview › Blessed by its prime location. 28 . › Won award for the Best Airline in Southern Europe and World's Best Economy Class Onboard Catering at the 2010 World Airline Awards. › Member of Star Alliance. by passengers carried. › Ranks # 4 among AEA members.

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

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

586 2009 0 17.474 114.584 1H'10 32 . 87% of carried cargo was from the international segment.149 161. 201. 50.654 tons cargo.000 lines is increasing over the last two years.492 145. As of June 2010.070 83.732 2008 36.404 1H'09 19.864 30.321 2005 (Tons) 150. indicating 50% increase compared to the same period of 2009.000 carried total of 151.158 132.Cargo 250.380 2006 39. THY has 100.000 33.000 50% › As of June 2010.000 International Domestic › Cargo carried in international 200.073 2007 37.Cargo Transportation THY .653 126.

060 246.000 48% 382. 33 .722 46% share in Turkish cargo market by the end of 2009. has increased its market share to 60% as of June 2010.890 182.135 150.000 60% 57% 300.572 398.974 159.873 20% 0 2005 2006 2007 2008 2009 1H'09 1H'10 0% decision made to purchase 2 Airbus cargo aircraft A330-200F. › According to the Fleet Plan.284 148.480 50% 417.116 348. which will be received in the year 2010 and 2011.040 183. having 57% market 450.Turkish Cargo vs THY Turkish Market THY THY Market Share › THY.000 144.245 100.052 198. 40% 238.956 55% 80% 60% (Tons) 44% 331.

› Addresses the training needs of cargo and passenger agents. Boeing and aviation industry. specialized in their areas. 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.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.  Reservation › Gives training services about 10. 34 . RJ70/100 trainings › Has been applying ISO 9001 Quality Management System since 1998.

So far. › Giving 210 hours flight training and 1200 › 5 full flight simulators for RJ-100. › Turkish Airlines Flight Training Center offers: › Cockpit Crew Training › Cabin Crew Training › Simulators May 2006. B737-400. B737-800 and A320s aircraft. need for new flight personnel for THY. › Started training with 16 pilot candidates on › THY not only address airlines within co-partnerships.A320-A330/340) will be in service as of 2010 35 . 66 students have graduated from the Academy and started flying at Turkish Airlines. hours ground training. › Currently 51 pilot candidates are given training at the Academy. 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. › A340 ”Business class”. but also other airlines.THY Academy › THY Flight Training › Turkey's sole flight training center. 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 .

192 70 208 1.104 103 1.008 2.824 1H'10 199 320 512 355 1.595 3.180 5 0 0 -596 87 786 2.471 405 520 11 2 -1 399 259 1.187 85 243 1.224 2.923 4.667 155 1.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 1.395 3.695 2008 196 203 228 146 773 1. year-end EURO exchange rates were used 36 .968 1H'10 328 321 1.296 2.255 1.402 2005 113 161 149 332 755 540 72 249 861 110 1.878 2007 132 213 222 127 694 918 77 109 1.471 3.515 520 585 20 0 -11 592 145 1.402 2006 197 135 241 573 1.968 2009 191 260 272 180 902 1.010 4 0 0 -336 97 869 2.905 2.878 2008 236 163 825 1.695 2009 507 206 582 1.362 110 2.017 36 0 0 -230 155 1.227 445 2.824 In converting the TRY reported results to EURO.395 2007 281 144 445 870 1.488 432 2.919 4.822 2.081 2.307 67 154 1.386 1.882 2.891 117 2.395 2006 118 172 174 113 577 780 63 106 949 95 1.672 3.657 224 1.528 82 781 0 2 0 0 530 1.

837 391 30 -111 310 2 753 2009 3.407 -1.885 387 42 -93 337 6 80 1H'09 1.323 84 27 -63 47 -1 90 1H'10 1.228 -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.734 -2.857 -1.199 48 153 -34 167 2007 2.860 -1.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 1.449 285 127 -6 407 9 174 2008 3. the period average EURO exchange rates were used 37 .804 56 255 -166 145 2006 2.271 -2.247 -2.

4 5.7 9. €) 154.8 5 30 -5 Revenue (Mn.6 20.9 14.Subsidiary & Affiliates Capital (Mn.6 5. €) 170 78 185 5 Net Income (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% .

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

surrounding regions and worldwide. engine overhaul facility is planned to be comprised of approximately 25. venture to establish a new company. repair and overhaul (MRO) services to customers located in Turkey. › Established to provide engine maintenance. Turkish Engine Center. meters located at the Sabiha Gokcen International Airport.49% by Pratt&Whitney and THY Technic. respectively. THY Technic and Pratt & Whitney signed a joint › Owned 51% .Subsidiaries & Affiliates TURKISH ENGINE CENTER › Turkish Engine Center › In 2008. › The new environmentally efficient CFM56® and V2500 40 .000 sq.

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

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

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

611 as of June 2010. respectively. 21 B737& 3 B757 aircraft with total seat capacity of 4.50% by THY and Lufthansa. will add 4 brand new Boeing 737-800s to its fleet until the end of 2010.948 passengers in 2010.Subsidiaries & Affiliates SUN EXPRESS › Sun Express A. number of personnel:1. › 2 brand new Boeing 737/800s have been delivered. by achieving load factor of 72. › Market leader in charter flights between Germany and Turkey.88%.S. (Equity Pick-up) › Founded in October 1989 as a subsidiary company of Lufthansa and Turkish Airlines. › Owned 50% . 3 B757 aircraft will be returned to the lessor until the end of 2010. 44 . › Carried 2. › Flies to/from 22 airports in Germany. 20 in Turkey and 45 in other countries. posted revenues and net loss was 185 mn€ and 51 mn€ respectively. › As of June 2010. › Fleet consisted of 24 aircraft.883.417 › During the 1H‟10.

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

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

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