- Global Value Chain and Customs
- Turkey’s transport infrastructure is connected to Europe
- Borusan Lojistik eyes to enter top ten globally
- Militzer&Münch’s new route of growth passes through Turkey
- CEVA’s Vietnam expansion
- 2013 may go bad for the ship owners
- MSC to increase capacity in the Mediterranean
- Batu Logistics provides the benefits of WCA network
- Genel Transport, eyeing place among IATA’s Top 10
- Air cargo bridge to Turkic Republics by Dogruer Logistics
Raising upper with bigger steps: TURKISH CARGO
In the past 10 years, Turkish Airlines has grown very quickly with a stable manner. In the challenging environment, Turkish Airlines ranks 6th largest network in the world with almost 200 destinations in over 80 countries. In addition to taking the advantage from wide body aircraft’s high load ability, newly joined extended rage freighters made a sharp increase in the cargo capacity. Thanks to Turkish Cargo’s rapidly growing success, Turkish Airlines now took its place as a global player in world cargo arena. Besides capacity increase, the strategic location of the company’s Istanbul hub which connects North to South and East to West is another reason of the company’s success.
Asia Pacific Region is critically important for Turkish Cargo. Hüseyin Ceyhan, Turkish Cargo Far East and Asia Regional Manager, mentions that in Asia Pacific Region, besides passenger flights the Company is aiming to increase its freighter service to 20 destinations. Hüseyin Ceyhan declares, “Ho Chi Ming City, Singapore, Guangzhou, Chengdu, Madras, Karachi, Kabul, Dushanbe and Ashgabat are the new destinations we are planning to operate freighter service in the close future”.
How was the 2011 performance of Turkish Cargo that expands its capacity and flight network day by day?
We are trying to meet customers’ demands with the best way by not only expanding our flight network with new destinations but also increasing the number of flight frequencies in order to improve quality, comfort, security and speed of services. This service ended up with a revenue increase of over 30% in comparison with previous year.
What will 2012 be like for you? Would you tell about the 2012 objectives and new investments that will be made this year?
In airline industry, approximately 15% of revenue comes from cargo sales. At this moment Turkish Airlines’ total cargo sales got a share of 10% in its own revenue and it indicates an opportunity for us to grow by 50% to achieve global level. Our large network, geographical location and service quality requires and forces us to achieve 15% of revenue share in the very short period. On the other hand when you have a role of global player in this industry, it is inevitable to overreach this target. We, as Turkish Cargo, aimed a growth over 20% for 2012.
How many different destinations does the Company provide air cargo services with as of 2012? Would you inform us about the capacity that the Company present to its customers, thanks to the aircrafts newly added to the fleet on the basis of both cargo and passengers?
Turkish Airlines provide wide range of passenger and freighter services varies from narrow and wide bodies of Airbus and Boeing. We fly to 200 different destinations in over 80 countries.
As 2012 we provide weekly freighter services to 33 destinations worldwide. These are; Budapest, Moscow, Paris, Zurich, Milan, Maastricht, Cologne, Frankfurt, Tirana, Stockholm, Kiev, Madrid, Tashkent, Almaty, Bishkek, New Delhi, Dhaka, Mumbai, Bangkok, Hong Kong, Tbilisi, Seoul, Tel Aviv, Beirut, Amman, Jeddah, Riyadh, Dubai, Casablanca, Algiers, Mitiga, Cairo, Lagos.
In addition to scheduled freighter services, our customers have charter freighter and trucking opportunities to any destinations. Regarding to new destinations and new fleets joining to the family, in 2012 Turkish Airline has 11% of capacity increase in comparison with previous year and we are willing to have a slightly higher growth to fulfil the demand in the coming years.
What’s the ratio of transit cargoes in Turkish Cargo's total cargo traffic? Would you tell us about the success the Company had in 2011 and the strategies will be followed in 2012 in order to increase the share of the pie that the Company has been getting? Which markets are you going to be focusing on in order to enliven the transit cargo traffic?
New destinations and extended range aircrafts have provided a chance to improve our services in transit cargos which is currently almost 60%. In 2012, our sales and marketing strategies are shaped in order to support our Istanbul hub, newly opened destinations, and have a balanced increase on both inbound and outbound shipments. Instead of focusing on existing markets challenging with strong competitors, we prefer to grow on the niche markets such as Africa and South America markets. We already have success on these destinations due to high capacity and great service arrangements.
When we consider that Turkish Airlines had inaugurated the Far East office in December of the last year in Hong Kong, what can be said for the the position and structuring of Turkish Cargo in Far East market?
In order to manage the market, you must take a role inside the market. While sun rises in Istanbul, sun sets in Japan which makes causes delays in communication. We are glad to announce to have a very large network worldwide with almost 200 destinations. The large scale of service pushes us to break our limits out of our hub, and centralize into different regions with dynamic structures, quicker response times, and managing with cultural advantages.
In order to respond quickly to the market, our Asia Pacific Office based in Hong Kong announced in 2011. Besides Asia Pacific Regional Office, Turkish Airlines newly structured total 6 regional offices worldwide.
Asia Pacific Region is extending and improving its service compare to 2010 with a revenue growth of over 50% at the end of 2011. This year 30% growth is planned and overall nearly two times growth is targeted compare to past two years.
In the beginning of April 2012 we have started new freighter services to Seoul, Bangkok and Dhaka. Besides new destinations there are additional services to the existing countries. Saigon, Singapore, Guangzhou, Ashgabat, Kabul, Dushanbe, Karachi and Chennai are the destinations we are planning freighter services in the coming days. Increased wide body passenger flights also contributed sufficient cargo capacities.
The instability in the Middle East subsequent to the crisis experienced in Europe changed the route of export as well. For the exporters, the Far East markets, especially China, has become favourite booming markets. How did such conditions this reflect to the transports of Turkish Cargo in the region?
There is a trading flow from east to west regions for over 2,000 years. Within these years air cargo transportation received a very important share among classic transportation modes due to global economic growth, technological improvements, and transportation cost decreases.
Nowadays air cargo has a unique importance which cannot be disregarder within all transportation modes. It is possible to deliver any amount and kind of product from shipper’s warehouse to retailers’ shelves within 48 hours. In worst case just after additional few days of warehousing service, the shipment can be in market to meet with customer. I evaluate Middle East and Europe crisis as a temporary issue. These two regions continue growing in both export and import directions.
Rather than China alone, Asia Pacific Region in a whole perspective is being transformed to a very important market. Especially newly developing countries are becoming strategic and key stations once they prove their trustworthy economy, political stability to the investors. We on behalf of Turkish Cargo are giving all attention to these growing markets, and taking necessary precautions.
What is Turkish Cargo’s current cargo traffic, the sectors Turkish Cargo mainly serves to, and the destinations for the Far East market? Would you state the Company’s mid and long term goals for the market?
Air cargo is preferred for mostly low weight but high value products. In addition to urgency of shipment, the owner of product may make a decision on which way of transportation mode is preferable depending on the occurred investment cost during the shipment duration. Mainly electronic goods, industrial products, garments, pharmaceuticals and a very wide range of other commodities are exported from Asia Pacific region.
In Asia Pacific Region, besides passenger flights we are aiming to increase our freighter service to 20 destinations. As mentioned, Ho Chi Ming City, Singapore, Guangzhou, Chengdu, Madras, Karachi, Kabul, Dushanbe and Ashgabat are the new destinations we are planning to operate freighter service in the close future.
We would like to learn your evaluations regarding the current condition of the Turkish air cargo market and your anticipation for the market… Which markets will be the ones that will create a multiplier effect in Turkish Cargo’s growth in both domestic and international markets?
As a flag carrier, we can agree on our dominance in both Turkey’s domestic, inbound / outbound markets. Certainly Turkish economy, world’s one of fastest growing economy after China has an impact on air cargo transportation as well. However the growth of Turkish Airline is clearly has a larger proportion than growth of our economy. While spreading our network all over Asia and Europe, we have multiplier characteristic effects on especially East Europe, Africa and Central Asia countries. In the new period, Africa and South America is our target destinations to grow further.