INTRODUCTION

This project is about an airline company in Turkey, which is named Pegasus Airlines. The company was established in 1990 by Aer Lingus, which is a participation of partnership between Silkar Investment and Net Holding. The origin of company was in Istanbul city. The company was made first flight in May 1990. In those times, company was working on flights that associated with travel agencies. Between the years of 1990 and 2005, company did not have any kind of scheduled flights, they were flying only with travel agencies on associated flights. After 15 years, company has changed hands in 2005 and the owner of Pegasus was ESAS Holding. Since 2005, ESAS Holding is the only owner of Pegasus. Ali Sabancı is the chairman of the board and Sertac Haybat is the general manager. In this project we are going to examine the time period between 2005 and 2011. Because, Pegasus Airlines had different objectives and strategies before 2005.

1. Company Profile

In this part of our study, we are going to introduce history, organizational structure, policies, and services of Pegasus Airlines. Pegasus Airlines describes its mission as; “We believe that everybody has the right to fly. The Pegasus Family, our suppliers and our partners work together in cooperation to achieve this goal.” And they describe their vision as; “To be the leading low-cost airline in our region with our innovative, rational, principled and responsible approach. Our leadership criteria: numbers of guests, our response to customer expectations, our pricing policy and the added value we provide to the Pegasus Family” 1.1 History of Pegasus Airlines Pegasus Airlines was bought by ESAS Holding in 2005, just after the Turkish Government declared a new legislation about airline business. That legislation gave the right to companies to establish their own private airline companies in scheduled flights.

Pegasus Airlines was started to accomplished scheduled flights with several new private airline companies which were competitors of Pegasus Airlines. But, Pegasus Airlines made right choices to get more revenue, other are just get what they needed in that time. At the beginning, they only have two airplanes. But, now they have thirty-two airplanes and the fleet gets bigger and bigger every year. They also bought one of their competitors, which was named IZair. Here are some of milestones of Pegasus Airlines;
• • • • • •

2005 2005 2006 2007 2007 2007 -

Introduced online seat selection Introduced Ekopark services for our guests Began the Pegasus cafe service Started selling travel insurance online Became sponsors of the PWA Windsurf World Cup Took delivery of first aircraft named 'Hayirli', first of our planned fleet of 40

Boeing 737-800s. The biggest single investment ever made in the Turkish private aviation sector, valued at USD 3.2 billion
• • • •

2008 - Started a car hire service online. 2010 - Started a pre-ordered meal option before flights 2010 - Flew 8.6 millionth guest 2010 - For the first time in Turkey offered mobile phone check-in using a barcode. Also offered an online facility to purchase extra weight allowances for luggage and optional online seat selection

2011 simulator.

Built a flight training center with the latest flight simulation technology,

placing Pegasus in the top 10% of companies out of the world's 582 airlines with this

2011 -

Integrated Groundling End to End Network Solutions System into fleet,

becoming the first airline in the world to do so.

1. environment. Pegasus Airlines safety policies are as follows. To evaluate all employee reports in the strictest of confidence. Also. constantly improve our operational efficiency in order to provide reasonable and on-time services to our passengers. work health and safety policies are also company’s important goals. as it always exists in companies. to ensure that employees at every level can report issues anytime and without notice. But. they are not using the company name.1. These policies are fully apply all mandatory aviation regulations and ISO 9001:2000 standard requirements. when they also assessing the performance. Reinforce teamwork. There is a hierarchical chain for management. as soon as possible. There are no restrictions to the reporting of flight and ground safety issues. Last year.2 Organizational Structure of Pegasus Airlines Pegasus Airlines has one chairman of the board of directors. . staff excellence and unrivalled service to carry Pegasus Airlines far into the future. they always say. They also make the corrective actions of margin errors. and 6 members of the board of directors which includes the vice chairman of the board of directors. Employees at every level of seniority may report directly to the highest level of seniority. “Pegasus Family”. they gave their new airplanes their colleagues’ children’s names. and make its first priority to achieve scheduled flights. in difference Pegasus Airlines’ board of directors have significant respect to their colleagues. fake all necessary steps to ensure secure and safe flights. to ensure that Pegasus Airlines applies all national and international flight and ground safety regulations and standards. Pegasus Airlines is the first airline company in Turkey which makes couch surfing for lowering the prices. Quality. Their main duty is to decide companies new actions. The board of directors also controls the work of departments. Pegasus Airlines make its main goal to give lower prices with a significant quality. On-going training of employees in flight and ground safety issues. like a natural disaster or economic crisis.3 Policies of Pegasus Airlines After the company changed hand. ensure the satisfaction of all our passengers.

Pegasus Cargo is also a foundation of Pegasus Airlines which is used for airline cargo services. and meals with a price. Pegasus Airlines has a website which offers lower prices and the right to choose seats and to make or not to make a flight insurance. They have a system. 1. External Analysis . model toys. which is named Pegasus Card.4 Services offered by Pegasus Airlines Pegasus Airlines has scheduled flight in domestic and international lines. Pegasus Airlines also have an alliance with HSBC bank. especially the domestic ones. Pegasus Airlines encourages employees to share information regarding flight and ground safety with the Quality Assurance Management Department. snacks. To use written and verbal communication to increase employee awareness regarding flight and ground safety procedures. Pegasus Airlines offers limited luggage (in domestic flights 15 kg and in international flights 20 kg). you can give pre-order for your meal in flight. Pegasus Airlines has twenty-flight destinations in domestic lines and sixty-flight destinations in international lines to eighty-flight center. Some of these flights are achieved several times in a day. Also. to make the card owners collect flight credits from their shopping. Pegasus Airlines engages in notifying its employees if the activities of other establishments in the sector threaten flight and ground safety. and aims to provide the necessary environment for this to flourish.Pegasus Airlines believes that the interactive process of communication between employees and feedback is part of our corporate culture. they made an agreement on a credit card. Besides these flights. 2. also hand-baggage of 9 kg is allowed both in domestic and international flights. To identify causes of human error and to take preventative measures. In its flights. which gives you the privileges to order food before flight with a lower price. Pegasus Flying Café is another service of Pegasus Airlines which offers drinks. which is named pre-ordered food delivery on flights.

government offers that private companies can own airline firms in scheduled flights.In this part of my survey. a) The property of public institution like associations. regulators. and other laws for airline passenger transportation. • Entry 31 – Inside The Turkish Republic air space. These lines are. Around 2005. trade unions. Turkish Private Airline Law has some lines strictly concerns Pegasus Airlines and the other airlines firms. foundations. Turkish Government made a new regulation for airlines. I am going to analyze the government. foundations who has been registered in Turkish Trade Registration. customers in the second part. technology. associations. In these three parts. Government regulates and controls taxes. fuel prices. environmental protection laws. and 3) the industry. labor unions. economy. organizations. and the administration must have . In this regulation. between two destination flights must be done by only Turkish Aircrafts. Every plane landing or taking off has to pay landing or taking off fee.1The Macroenvironment Government is the beginning factor of the private airline. the administrative part must has the majority of its members from Turkish Nationality. firm in third part. Beyond these direct effects. b) The property of companies. international. political parties. and demographics environment in the first part. suppliers. • Entry 49 – A private aircraft is counted as Turkish Aircraft in situations which are defined as. 2. 2) the task environment. government also has the control of airports. I am going to analyze the external environment in three parts 1) the macroenvironment. competitors. Pegasus and its competitors in low price private airline sector began scheduled flights after this regulation made. and professional organizations.

fuel prices. • Entry 85 – Aircrafts must pass the examination and tests of flight suitability. and to carry the certificate b) To carry nationality and register signs c) To carry flight suitability documents d) To own crew documents e) To carry permit of installation of wireless f) To carry insurance policy g) To carry the documents which defines by laws and regulations • Entry 108 – The carrier must carry the passengers’ baggage and belongings. The government stipulates the baggage responsibility on companies. must be dropped out of previous registration.Turkish Citizen(s) or at least one of the partners of institution must be Turkish Citizen. they can not have foreign aircrafts in domestic scheduled flights. customers’ demand. as in the transportation contract offers. politic situation and trade volume between destination country and origin. • Entry 54 – Aircraft which is registered in Turkish Private Aircraft Registration. they must give the right amount of baggage right to their customers and must achieve the rapid baggage delivery. and they must first pass examination and tests for flight suitability of aircrafts. As a . a) A central register must be registered. as the regulation of their own countries. • Entry 122 – The carrier is responsible for the harm of late baggage arrivals. to get the chance of registration • Entry 89 – Every Aircraft which flies into Turkish Airspace. As these entries explain briefly the airline firms have some restrictions on owning aircrafts. International policies of Pegasus are shaped by landing fees. Companies have to register their new aircrafts by some entries. taxes.

fuel limitations etc. o o o o Pegasus is not member of Star Alliance Membership. efficiently and economically under clearly defined rules. For example. The International Air Transport Association (IATA)’s mission is “Air transport is one of the most dynamic industries in the world. IATA seeks to ensure they are well informed about the complexities of the aviation industry to ensure better. IATA serves as an intermediary between airlines and passenger as well as cargo agents via neutrally applied agency service standards and centralized financial systems. If you would have the tickets from Star Alliance firms. For the benefit of all parties involved: o For consumers. securely. A large network of industry suppliers and service providers gathered by IATA provides solid expertise to airlines in a variety of industry solutions. also company must agree with the government about taxes. Passengers can make one telephone call to reserve a ticket. while keeping costs down. fuel prices. taxes. This registration includes all the information like landing fee rates. landing fees. you have had a connected flight and your flight has been delayed. The International Air Transport Association (IATA) is its global trade organization”. . check-in offices etc. which offers their customers lots of opportunities around the world. wealth situation of population. IATA allows airlines to operate safely. Every airline company must be registered into the airports before they begin their flights.. Economy is affecting Pegasus both domestic and international areas. tourism. For governments. long-term decisions.solution of these problems. Main subjects are economic growth. Pegasus has been registered into The International Air Transport Association (IATA). IATA simplifies the travel and shipping processes. you could catch your connected flight. pay in one currency and then use the ticket on several airlines in several countries.

3 19.8 8.2 10.2 14. Results of GNP GNP of Current Prices Growth Rate GNP of Current Prices Growth Rate GNP of fixed prices Growth Rate Term (Million TRY) % 16.9 20.5 13.7 17. when the gross national product level is low people are more and more intended to take cheaper ways to travel.2 5.5 11.1 2.0 15.6 I II III IV 2010 annual I II III 2011 9 months 241 881 267 144 297 184 297 541 1 103 750 290 178 318 345 348 802 957 326 160 332 173 821 196 516 204 260 734 929 183 975 203 586 201 512 589 072 23 390 25 645 28 672 28 033 105 739 26 205 27 905 31 029 85 139 Here are the numbers of passengers who traveled 2010 and 2011 (first six months).0 12.2 19.7 (Million $) % 27.9 13. But.2 9.3 9.2 9.0 (Million TRY) % 12.0 8. Here are the gross national product levels of few years.000 more passenger than half of 2010.000.0 19. Abroad (International) passengers are more intended to travel summer season for summer tourism.3 16. .0 19. they do not care about the comfort or rapidness of the travel type. first 6 months of 2011 domestic flights has around 3.2 17.6 17.In domestic flights. As you can see from the charts.4 18.

Fuel prices are another important factor for creating lower price policy. Taking a look at the price action over the past six months Taking a longer term perspective of price movements Impact of Euro/US$ exchange rate movement . some of the graphics indicates the fuel prices and currency effect on them.

. There were not enough labor force for airlines. Airline industry has lots of obligations for their workers. in recent history of Turkey women are not educated for these type of works. customer relationships. etc. airline personnel must be well educated. there is a peak point for fuel prices around 125% increase has happened. Because. Pegasus give importance of technological improvement. Pegasus has been purchased a flight simulator for training their pilots. education. they have been active only in textile sector and medical instuations. Work groups. they have been raised to top 10% of the flight market. nowadays new schools and training center have been opened. gender. When the inflation is higher than previous years customers are not very intended to take flight. This means. family size. and so forth. . Inflation also affects the tourism and this is also very bad for airline companies. Demographics are measusres of various chacracteristics of the people composing groups or other social units. or societies can be described statistically by referring to their members’ age.In June 2008. tourism has very big part of their market share. that’s a problem. income. they prefer railway. But. They have been also using Wireless Groundlink End to End Network Solutions to accopmlish two point data flow all the fleet are installed with this system. markets. These type of events make the companies more cautious about their next move to survive.Because. organizations. Inflation is another factor that affects the companies with customers’ desires to take the flight instead of other transportations. occupation. safety trainings. in airline companies most of the crew are female and must be trained for cabin work. Social and natural environment. buses and other cheaper methods to travel between the destinations. countries. languages.

Their strategy and goals are simple. 2. are regulates and examine by a department which is named Private Airline General Management. all the regular technical and logistic activities. registration of both fleet and airline companies. schedules. Tüpraş was a government facility. For the flight menu Pegasus mostly uses their group company’s products. THY is responsible for maintanance and repair of Pegasus fleet. The Ministery of Finance also have to examine companies for taxes. that occur in Turkey. Tüpraş’s strategy is to keep up the world development. The task envorinment comprises the specific organizations with which the organization directly interacts. Also they have the highest percentage of flight on time. Suppliers. to make their members not worried about lose their jobs and more wealty. They are responsible for examining things like. Most effective factor for this much customer population is the low cost policy of Pegasus. 95. revenue reports. they can offer cheap and good quality foods and beverages to their customers. The Social Security Instuation examines the workers’ safety and insurances. in 2004 government sold Tüpraş to third person company. Pegasus has an arrangement with Turkish Airlines to take care their fleet. and price levels. Thus. etc. there is only one significant labor union named “HAVA-IS”. Hava-is has 99 % of all labor. landing and take off procedures. But. which is operated and centered in Turkey. in its union. Tüpraş is the only jet fuel supplier in Turkey. labor unions.2The Task Environment The task environment is another part of external environment. gas emission. Regulators. These organizations include regulators. besides low cost policy they scheduled their flight for both business destinations and majority of the mid-wealth level population’s choice of destination. Labor Unions. both flight and land crews.Customers are from mid-wealth and high-wealth population. THY’s technical crew are the most talented and the most realible crew in Turkey. Private Airline General Management is a department of The Transportation Ministery. flight safety. which are contains around 80% of the whole turkish population. quality. The fuel market is in their monopoly. . They have a lot of actions to create an environment which has better conditions for airline workers. suppliers. which affects both the competitors and the firm itself. and customers.63% .

Bodrum. which have more customers then other destinations of Pegasus. turkish tourist want to go some places which are known for its winter climate. Pegasus has lots of foreign customers for the Antalya. 12 common destin. they are flying to the destinations. Most of the turkish population use transportation either to do business or to visit their relatives. customers change their priority to punctuality. Simply. a new customer type is growing very fast. etc. Customers. Pegasus’s competitors list is like below with the priorties.3The Indusrty There several competitors in domestic and international flights. They don’t have lots of choices for ground team. there are only two company exist. Istanbul. in international flights. 2. which are Çelebi and Havaş.&Asia) İstanbul (EU) İstanbul (EU) Destinations 24 common destin. Pegasus has 10% of its summer foreign customers. But. . but the first priority is not the price. but çelebi is offered less price and less obligations to airline firms. which are very active in Turkey. But in winters. 4 common destin. Izmir. most of pegasus competitors have little fleets with respect to Pegasus’s fleet.For airport ground team and check-in crew Peagasus has a contract with Çelebi GT. Nowadays. In summer season. even they have the lowest prices. All destinations Fleet 28 airplanes 183 airplanes 20 airplanes 33 airplanes 28 airplanes Besides these airline companies. But. there are several low budget airline companies exist. Both of them are experienced and well know. This does not mean they ignore the price. they also care about the prices. In domestic flights. 8 common destin. Even in winter season. Name Sunexpress Easyjet Anadolu Jet Onur Air THY Center İstanbul (Asia) Basel Mulhouse İstanbul (EU. customers always put the prices in their highest priority. customers who just want to see new places and do touristic actions.

Because. also they have their own technical department. that its competitors already have scheduled flights to these destinations. For that reason. which is indeed Germany. They have only 4 common destinations exists with Pegasus flights. which are Basel-Muhouse and Londra (2 airports). They have a big fleet but they do not have that much flight like their competitors. Onur Air is a private firm whose owners do not very intend to make it big. Because. As a result of Sunexpress’s origin. these flights have more income then the other flights and there are plenty of customers on these destinations. 3.Pegasus has a fleet of 39 airplanes and destinations of 85 cities. and from other countries to these touristic locations. Pegasus’s priority is to offer low cost and avaiblablity for all destinations. Sunexpress is Pegasus’s first competitor in the market. Pegasus competites with Sunexpress only in domestic and Germany ended flights. Even in their scheduled flights. they both have the same goals and same infrasturcture for their domestic flights. and competitive advantages are discussed and illustrated. Easyjet is not a domestic company. its origin is Basel – Mulhouse Airport. 3. They have scheduled flights and much more than these flights they are doing some subcontractor flights for other tourism agengies. Ankara. Anadolu Jet is indeed a participation of THY (Turkish Airlines). Internal Analysis Pegasus’s mission. they have the highest prices in Turkey. they always prefer to fly some toristic locations in Turkey. financials. but these flights are the most valuable flights for turkish companies. Sunexpress achieves most its international flights to Germany. But. they are using the turkey’s capital city. to achieve their flight in both domestic and international. They enourmous number of destionations and they have well-educated crew and technicians . THY is the well-known and biggest turkish airline company around world.1Mission Statement . Because. value chain. which are counted both in domestic and international points are together.

The mission statement is broad enough that it allows for Pegasus to use any means possible to organize information. and service quality. The mission statement sets the company up as a resource that would be used by anyone who was doing research whether as part of a thesis or just a question out of curiosity. Medium income level customers are more concerned about the prices. and they only care about the prices. . This mission statement is not completely true because there are always some people outside.” speaks to their goals. it only states the end result. This goal is a very broad goal to make. medium. our suppliers and our partners work together in cooperation to achieve this goal. The Pegasus Family. Wealthy customers prefer punctuality. comfort. poor levels. The statement definitely gives the company a future to strive towards. because everybody wants different things to choose a Pegasus flight. Mission statement is graphic because it gives a sense of the scale of the endeavor in its bold declaration “…everybody has the right to fly”. or just because of flight phobia. or because of some criminal records. The mission statement does not give a timeline. who can not use the airlines because of their income levels. Customers who can be counted in poor income level are not so intended to use airlines to travel. only some of them are using it in urgent situations. “We believe that everybody has the right to fly. which are wealthy. as it will be quite some time before not everybody has the right to fly in a manner of money even though they have made great strides. but they also care about comfort. There three part of customers in a manner of economics. and service quality.Pegasus’s mission is. This definite goal is making the future and past of the company. but does not reflect the way they earn a profit.

They had assest of 223 million $ in 2008. extra luggages. They had been doubling their assets past years.The statement is forthright in understanding to Pegasus growth and service widener approach for airlines customers in suggestion that “Pegasus is continually developing to meet passenger expectations and priorities…”. “Pegasus operates Turkey’s youngest fleet with the newest aircraft” . But. “Pegasus is Turkey's only private airline whose wide network of domestic and international flights depart from Istanbul’s Sabiha Gökçen Airport”. They have a significant number of destinations (85 destinations). The statement is really in understanding of “where is Pegasus Airlines company going?” is in suggestion that “Pegasus leads the way in Turkey by applying its low cost model”. even they started this journey at end of 2005. this statement has a good part. and low income level population. meals. there are other services with income like. Pegasus Airlines 734996815 1. Low cost and finding the lowest prices in the market all the time is the priority for medium.83% 90. But. and 803 million $ in 2010. their fleet is not big like their bigger competitors. They are planning to make the company public at end of 2012. even from job applications. which might have much more number of new aircrafts in their fleet with older ones. using an airport is far from turistic places and also far from city centre is not good for the customers from abroad or customers whose intention is just for turistic purposes. Pegasus derives almost all its revenue from tickets. Pegasus has been established in 2005 by ESAS holding. 3. on the other hand majority of Pegasus’s customers are in medium or low income level and these type of customers are stayying in asia part of Istanbul. their fleet new and there are not much aircrafts in it. This begs the questions of if customers find a better service from other airlines companies will Pegasus Airlines survives.02% Turkish Airlines 5613065757 3. The map above this paragraph is showning the 2012 destinations of Pegasus Airlines. They are leading low cost market and they have been doing something that others do not. they offers stable prices in long periods not just a day or a week.47% Revenue (in $) Raito Analysis Income from Continuing Operations Cost of Goods Sold . cargos. delayed tickets. and a bad part.2 Financial Analysis Pegasus is indeed a young company. they are offering stable prices just before a week from flight.40% 78. 463 million $ in 2009.

Balance Sheet Common-Size Data Liabilities/Total Assets Profit Ratios Return on Assets 51.68% . Turkish Airlines’ revenue is 763% of Pegasus Airlines revenue.48% 107.83% 1.67 1.42% 0.76% Table 1 Primary Competitor Analysis (Turkish Airlines) Pegasus has revenue of 734 million$ and Turkish Airlines has revenue of 5 billion $. 1. Turkish Airlines has 2.69% Pegasus Arilines ended 2008 with a loss of 5 million $.38% just in 2010. which was shared to its stock holders.76% return from their assets. At the end of 2009 they managed to make over 7 million $ profit with their new strategy which was to make ticket prices more stable. Their assets grew with 73.53% 1. They have made nearly same percentage of . Pegasus Airlines has a fleet of 39 aircrafts and destinations of 85 cities.83% of its income from these operations. These are criterias which are very important for wealty customers. All these informations indicates that Turkish Airlines has more income and efficiency from its assests.20% 0. Pegasus Airlines Growth Ratios Sales Growth Income Growth Asset Growth Activity Ratios Fixed Asset Turnover Profit Ratios Profit Margin Return on Assets 2010 43. these are two close numbers.69% 72.68% 34. When they came to the end of 2010. But.40% of its income from these operations. Turkish Airlines has 183 aircrafts and 190 destinations. as one can understand from the return on assets Pegasus Airlines has 1. For these reason Turkish airlines has a buget bigger than Pegasus Airlines. Pegasus Airlines is a young company. they have more destinations and they have better service quality.68% Table 2 Ratio Analysis 2009 -3. and Turkish Airlines is the oldest company in turkish airline sector.69% and most importantly their income grew 72.18% 1.42% efficiency and their sales grew 43. they have achieved 17 million $ profit and with nearly 4 million $ profit.38% 73.86 1.47% 230.70% 2. 3. But.

which in 2009 every 0.67 $ investment’s return is 1$ turnover.996 USD Table 3 Revenue values of last years Pegasus Airlines has achieved nearly 50% of growth in their revenue in 2010.3 Value Chain Analysis The value chain analysis describes the activities the organization performs and links them to the organization’s competitive position. which makes Pegasus Airlines more stable in economic environment.521 USD 529. and this does not mean company makes any loss from their actions.891 USD 734. and 2010 every 0. Because of investing assets is expensive in airlines business than other businesses. Value chain analysis describes the activities within and around an organization.996 USD 13. Turnover rate from assets have been increased from 0.investment with their income increase.486 USD 7.67 to 0. in 2009 even they had bigger net income than 2008. turnover rate increased about 20% from 2009 to 2010. Years Revenues (x1000) Net Income (x1000) 2010 2009 2008 511. they couldn’t make any improvement on their revenue from their sales. and relates them on analysis of the competitive strength of . Graphic 1 Revenue changes from year-by-year 3.823 USD -5.86.86 $ investment’s return is 1$ turnover. But.

3 Pegasus Airlines’ Value Chain Analysis Pegasus Airlines is a Istanbul (SAW) – Turkey based airline that have a comprehensive network of flights to over 85 destinations around the globe. quality control. managing. whether concerned directly with products and services or processes) Human resource management (those activities involved in recruitment. information management and others) o o o 3. finance.2 Support Activities Each primary activity is linked to support activities. it evaluates which value each particular activity adds to the organization’s products or services (Recklies 2001). which help to improve their effectiveness or efficiency. They can be grouped into five main areas: o o o Inbound logistics (receiving.3. o Procurement (the process of acquiring the resource inputs to all the primary activities across the whole organization) Technology development (all activities have a technology – including know-how and knowledge. It is considered as one of Turkey’s biggest airlines. developing and rewarding people) Infrastructure (systems of planning.3. training. 3. 1990 and 2005 they . storing and distributing the inputs to an organization) Operations (transforming inputs into outputs) Outbound logistics (storing and distribution and delivery of product and service combinations) Marketing and sales (means by which consumers are made aware of an can purchase products and services) Service (activities that enhance the value of a product or service) o o 3. The company was founded in 1990 in Istanbul.1 Primary Activities Primary activities are primarily concerned with the creation or delivery of a product or service. Between.the organization.3. Therefore.

The biggest difference of Pegasus Airlines to its competitors is its people. Better understanding and continuous learning are achieved by involving the staff in the job rotation scheme. Pegasus Airlines provides excellent customer service by: 1. Every member of the Pegasus Airlines family can represent the whole company 3. Creating a climate for positive behaviour Pegasus Airlines’ corporate culture instills in the employees the understanding of the company’s big picture. Recruiting the right people and offering proper Training Pegasus Airlines uses a holistic approach for managing its people. Service Straight from the Heart is a programme that aims to develop cultural change within the airline focused on improving customer service.conducted only private flights for tourism agencies. Passengers that travel with Pegasus Airlines know that they are in good hands. constant improvement and personal responsibility. The passengers in Pegasus Airlines always feel welcomed. Service is the principal means of differentiating between airlines and is highly influential in customer choice. After. The corporate culture that the company has encourages innovation. company changed hands in 2005. Continuous Improvement . The service philosophy of Pegasus Airlines – Service Straight from the Heart. appreciated and reassured. Operations Pegasus Airlines believes that everybody deserves to fly. encourages the employees to render quality service with human touch 2. Each employee in Pegasus Airlines is a flag barer of the company. They began to conduct scheduled flights. Pegasus Airlines has expressed within its programme its understanding of the importance of the people within the organization and its recognition of the contribution of those people to its success. The emotional bonding with the passengers is the key to building loyalty and one of the major factors that encourage the customers to repurchase the airline products.

Pegasus Flight Cafe Where you can find meals. Last know assets value is around 800 million $. governments or organizations. They are giving only ticket with taxes and 20 kg check-in baggage with an 8 kg cabin baggage for free. Also. Management of Pegasus Airlines gives importance to technological development than its competitors. Pegasus Airlines absorbs any good ideas from different companies. Pegasus made an investment of 22 million $ on Flight Training Centre and Wireless Groundlink end-to-end Solution. Rental Car. crew safety and service training. They are investing money on pilot training. duty free items. . Pegasus has no reputation like Turkish Airlines or any other global airline brand. Some Pegasus Airlines services are: 1. In 2011.Pegasus Airlines always bears a sense of urgency and crises. Services Everyday airline companies around the world offer their customers new and different services. Present successes are not allowed to create complacency. who can order a meal or extra baggage or choose their seat. and Hotel Pegasus offers its customers rental car services with a discount of 25% from all airports. Parking Lot service is only for the Sabiha Gokcen Airport (SAW). etc. customers could make hotel reservation with using Pegasus website. Pegasus Airlines doubled its assets in every year. and gifts with reasonable prices. some of them offer better services and more comfort and the others make it cheaper and less comfortable. ground services. Technology Development Pegasus Airlines is a young airline company. 2. Because of this. Pegasus Airlines offers everything as choices of customers. This way Pegasus Airlines can reduce the cost and thus the ticket prices become cheaper. Pegasus Airlines wants to evolve and to give best service with punctuality to its customers. and mostly e-business. Every airline company has its own key values. drinks. Anything else is charged with an amount of money. only economy class. Parking Lot. Pegasus Airlines has no business class in its flights.

then an e-mail and an SMS are sent to them with a boarding card and a barcode. Mobile Check-in Pegasus Airlines offers a new and useful process to its customers. and not later than 40 minutes to flight. They are simply getting flight information content simultaneously to Groundlink. cell phone. PDA. 4. and analyze them in 15 minutes.40) this way passengers could be more aware about their flights. on this facility. 5. This means every aircraft can be checked up in just 15 minutes and not in every month in just before every flight. etc. Flight Training Centre Pegasus Airlines has a simulator. 2. Customers can make online check-in not early than 72 hours. this way passenger can board with only using barcode on SMS. Human Resource Management Ensuring All Pegasus’s Family Members working in teamwork through unifying the objectives of everybody in the team and increasing their motivations to the possible highest . Online Check-in Pegasus Airlines offers its customers to make online check-in with only reservation number. which is just owned only 10 % of world’s airline companies. customers go online and make checkin with their e-mail and cell phone number. NotiFly Pegasus Airlines also offers flight reminder system with both e-mail (for free) and SMS (for just € 0. Simply. 3. and their names. This simulator based on real Boeing 737-800 aircrafts. to make check-in from their mobile devices. Wireless Groundlink End-to-End Solution Pegasus Airlines is the pioneer on using this system in both ways.1.

Pegasus’s expectations from Pegasus’s Family Members.level by providing a democratic environment. continuous innovation. while progressing in that direction. communication awareness. Pegasus expects them to be open to working discipline. effectively and quickly through completing their missing occupational and personal trainings required for maintaining their personal developments and keeping their motivations continuous and active. canalizing them to the personal trainings required for their personal developments. teamwork. results orientation. What’s next? Through Pegasus Airlines corporate orientation training programs. personality and/or foreign language tests are conducted and candidates’ references are checked. Ensuring All Pegasus’s Family Members executing their jobs correctly. finalizing the recruitment process together with the departments through managing the recruitment process in the most effective way and directing the right person to the right department on the right time. Arranging the most appropriate career planning to the individuals. Candidates fulfilling all the employment processes are given job proposals by the Human Resources department. Pegasus select the best. in which All Pegasus’s Family Members share their ideas freely. Pegasus provide support in their endeavors to become a valued member of the Pegasus family. ensuring fair salary management based on the results obtained from our applied performance system and the correct feedback to All Pegasus’s Family Members. Pegasus Airlines has two slogans to its possible new recruits: Are you ready to fly into the future with Pegasus? Candidates applying for vacancies in Pegasus Airlines go through one or two interviews in which the HR department and the person in charge of the relevant position are present. . Welcome to the Pegasus family. Pegasus help all new employees adapt easily to performing their duties in Pegasus Airlines and to learn the methods of this new environment. change and development. Depending on the type of position.

This way they can maximize their revenue with low prices. Pegasus Airlines create the most appropriate career plan for new employees and develop a performance-based salary and income-share system. This way. Pegasus Airlines applies a capacity. Pegasus Airlines also have company for disable passengers. The income-share system is based on the distribution of compensation among Pegasus’s employees depending on their performance and total earnings of the non-taxed net Euro profit earned during the fiscal year. Low Price Pegasus Airlines uses yield management system on its flights. they have very experienced pilots and cabin crew.Pegasus Airlines uses a quote for describing its performance assessment process. and continuous improvement. Through Pegasus’s performance management system and the right feedback. thereby directing them to the required training programs to contribute to their personal development. ground services." Goethe.4 Competitive Advantages Pegasus Airlines has sustainable competitive advantages because their remarkable developments on low price. to escort them to board or taking their baggage for them after flight. Pegasus’s main focus is to enhance the capabilities of our employees and to ensure their contribution to the overall corporate goals with a target-oriented evaluation process.59 years. Grounding Services Pegasus Airlines offers its customers parking lot service in Istanbul. and . security. They arrange some new routes. and take them into their flights. Offering low prices means more customer and more flights on way to customers’ demands. Based on the above. The information acquired during the performance assessment process ensures Pegasus’s family members’ improved capability. Also. Security Pegasus Airlines has an average fleet aircraft age of 2. 3.and target-oriented performance management system. Continuous Improvement Pegasus Airlines mission is to reach everybody. "Nobody knows the limits of their capabilities unless they try. in such amounts and rates as determined by the Board of Directors. customers can get rid of the payments and procedures for parking their car. Everyday Pegasus tries to make this mission happened.

Pegasus Airlines also cares about comfort on its flights. using feedbacks from its customers. They achieve and realize how they could make flights more comfortable without increasing the ticket prices.1 Strengths o o o o o Best and more stable low prices Parking lot services in Istanbul Mobile and online check-in ability To train their own pilots with Pegasus Flight Centre Experienced pilots and cabin crew Almost all flights from Sabiha Gokcen Airport – Istanbul Non-free flight café Flights are limited to only 85 destinations Fleet of 39 aircrafts Copying some of other successful airlines behaviours Expansion to other destinations Buy aircrafts from producers or other firms Make reputation with big promotions Increase in tourist population Recession – decrease in airline travel Fuel prices Competitors – Sunexpress and Turkish Airlines Government’s control on taxes 4. 4. They recalculate their goals for making flights more suitable and cheaper to its customers.3 Opportunities o o o o 4. SWOT Analysis of Pegasus Airlines The SWOT analysis is the process of analyzing organizations and their environments based on their strengths. Strategy Formulation . opportunities and threats.2 Weaknesses o o o o o 4. 4. weaknesses.make new flights to existing routes.4 Threats o o o o 5.

Pegasus Airlines also conducts two other operations in the market. taxes. which was clearly defined in previous sections. Esas Holding has shares inside a decade of other businesses. but their main business is always Pegasus Airlines.Pegasus Airlines has to make its new strategies in order to achieve its mission.G. They can do flights that they never did before and they can take flight reports and statistics for analyzing how accurate to fly in this new flight route. Pegasus Airlines has no business class in its scheduled flights. this does not mean they will grow this much rate. They have only one company with 100% share and it is Pegasus Airlines with İzAir. Second one is İzAir which is an airline company by itself. But. and portfolio analysis . it has to grow and pursue its low price policy. and even the attitude of people to flying or to just Pegasus airlines. Boston Consulting Group analysis. This helps the company allocate resources and is used as an analytical tool in brand marketing.C. Pegasus Airlines currently makes scheduled flights with low cost model and yield management system. 5. Boston Matrix. It can decrease or increase depending on market share in a new year. portfolio diagram) is a chart that had been created by Bruce Henderson for the Boston Consulting Group in 1968 to help corporations with analyzing their business units or product lines. Boston Box. product management. and they have limited number of destination. analysis. They were growing with a constant rate of 100% per year. which makes the ticket prices lower than its competitors and most of the airline airlines companies. For achieving this mission of Pegasus Airlines. but Pegasus Airlines is using it like a subcontractor for its new and old destination. They using other businesses to make more money to invest on aviation. fuel prices. BCG-matrix. and aircrafts to achieve its mission. First one is Pegasus Cargo which has only limited amount of budget and market share. İzAir is like forecast tool for Pegasus Airlines. as “Everybody has the right to fly”. strategic management. Past 3-year Pegasus Airlines always make its assets double. so from this information we can say Pegasus Airlines is a company who wants to grow in market.1Growing Strategy Formulation with BCG Matrix The BCG matrix (aka B-Box. But. its competitors. B.

superb. a company’s operation are covered 90% of its whole operations. Some of tickets which are named Superb and Flex. Pegasus mission is described as ‘We believe that . but Pegasus does not have. Pegasus Airlines has neither of this two services. Stars of Pegasus are Pegasus Flight Café. their biggest competitor. Cash Cow of Pegasus is Pegasus Cargo. They are making money from this business. Question Marks are what could company do in the future. but cargo business is not their priority.Stars are simply main services of the company. and flex. Turkish Airlines. They even do not think cargo business is one their main businesses. Only the flex tickets give the advantage to change flight date or cancel. Pegasus Cargo was established simply to make money and government obligation to carry a limited cargo per flight. Pegasus Airlines has only economic class flights and they have three price policies. has both of this two services. with the same services. Dogs are simply operation on break-even point with a slow-growth markets. Cash Cows are side services with low budget and good return. return from these operations are generally invested on Stars. Question Marks of Pegasus are business class. and oversea flights. the others do not give that chance to its owners. list of operations which are possible for company to achieve. which are campaign.

Pegasus Airlines has low market share in their cash cow. so the mission statement is not accomplished completely. they need to build customer loyalty in a sector that nobody will not be strong like Pegasus Airlines in that sector. so they manage to get bigger slice from business class. They can reduce the market share of low prices tickets. nearly 2-3% of market share.aspx?hisse= . Because of lack information in my hand now. they have partner firms or alliances on ground to do these services for Pegasus Airlines’ customers. They are doing these businesses just to give their customers wider service range. They do not earn much from these services. and rental car services. they must think all the international competitors not just domestic competitors. 6. But. The cargo market is growing with a very low rate. But. Pegasus Airlines has very low market share in their dogs. Pegasus Airlines has no market share in their question marks. the world is slowly becoming a small place with the effects of globalization. if something happens like a fuel crisis the company may not be survive from this kind of a disaster. because if they decided to do this survey.http://report. Because. every year nearly 25% of growth occurred in this segment. if they will earn more than they earned from low price ticket. but Pegasus has no intention to follow these market. For the oversea flights they need a bigger survey. They are not flying oversea and they do not have business class in their flights. because these markets are totally different from what Pegasus does. The market of low price flight tickets is growing very fast. So. I can only go this far. the market of business class and oversea flights is growing very fast with nearly rate of 15% in every quarter. nearly 0%. But. Because. Pegasus Airlines’ final strategy should be about either to create a new market or to exists in an existed market. nearly 60% of market share. Pegasus Airlines has great degree of market share in their stars. Pegasus Airlines should make forecasts about oversea flights and business class in their scheduled flights. REFERANCES Financial charts . Dogs of Pegasus are hotel reservation. otherwise they will make loss.com/MaliTablolar_2. The market is growing fast.paragaranti.everybody has the right to fly’.

dunya.com/en/ Fuel prices .com/ General information about Pegasus .com [Search: Pegasus] Flight maps .Descriptions .org/whatwedo/economics/fuel_monitor/Pages/index.http://www.airlineroutemaps.http://www.http://www.Management Function & Strategy 2nd edition Bateman/Zeithaml Financial & Technological News .iata.aspx .flypgs.http://www.

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