Introduction to Civil Aviation

(AVM 101)

Dr.İzay REYHANOĞLU
Week-5

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Airline Industry

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Business Models in the Airline Industry

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 Airline (Carrier) Business Models
• Network (Full-service, Hub-and-Spoke, Legacy, Luxury…)
airline,
• Low-Cost Carrier (LCC)
• Charter airline
• Regional (Feeder, commuter) airline

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Hub-and-Spoke

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 New York
Madrid Brussels

İST

Adana
Van
Ankara

In hub-and-spoke systems, several points of departure are

fed into a single airport (the “hub”), from which connecting
flights transport passengers to their various destinations
(along the “spokes”).
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Full Service Airlines

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These mainly comprise the traditional flag carriers like Turkish
Airlines, Lufthansa, AirFrance, British Airways – airlines
founded or established as part of national infrastructure
development.
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• A “legacy” or “full service network carrier”
is an airline that focuses on providing a
wide range of pre-flight and onboard
services, including different service
classes, and connecting flights.
• Since most FSNCs operate a hub-and-
spoke model, this group of airlines are
usually also referred to as hub-and-spoke
airlines.
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Turkish Airlines Economy Class

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Low Cost Carriers (LCC)

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Low-cost model invented by Southwest Airlines (1967-1971)
and pioneered in Europe by Ryanair and followed by Pegasus
in Turkey (1990-2005).
The underlying basis for all features of this business model is
the focus on costs and the core product of flying from A to B.
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 LCCs:
 Use of a single aircraft type or
interchangeable family of aircraft
 Operation of “point-to-point” instead of
connecting hub networks
 Single cabin service, with no premium
classes offered:
 Reduced “frills” and seating space on board
 No frequent-flyer loyalty programs
 Avoid use of traditional distribution channels

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Australian airline Qantas successfully completed the first-ever
nonstop flight between New York City and Australia, landing in
Sydney just before 7:45 a.m. Sunday, Sydney time, after 19
hours and 16 minutes in the air.

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Charter Airlines

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A charter flight is a private flight scheduled to meet the needs
of specific passengers or organizations. Airlines don’t have a
schedule for flight times or days.
Tickets are usually not sold by the airline, but by various
intermediate companies (travel agents, tour operators) which
have allocated seats on the planes.

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Regional Airlines

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Regional airlines are airlines that operate regional aircraft to
provide passenger air service to communities without
sufficient demand to attract mainline service.

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 Generally use smaller aircraft with 20-100 seats
and restrict their flight routes to a geographically
limited area.
 While some regional carriers operate
independently and focus on decentralised point-
to-point flights between smaller airports, others
work as feeder airlines for FSNCs and connect
their partner airline’s hub with regional airports in
the hinterland

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Airline Alliances

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An airline alliance is an
agreement between
airlines to cooperate on
a substantial level.

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Through these alliances, airlines
were able to provide flights to a large
number of cities and meet air traffic
and best prices requirements.
Partnerships and business alliances
allowed them to access a large air
network and provision of necessary
services.

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Alliance agreements took different
forms and included various elements of
code-sharing, marketing and pricing
cooperation, schedules coordination,
and offices and airport facilities

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 Star Alliance

• World's first and largest airline alliance.

• Since 1997 the core business of this alliance is the
cooperation with partners with different regional focuses
resulting in a powerful worldwide network.
• Lufthansa, Air Canada, SAS Scandinavian Airlines, Thai
Airways International and United Airlines are founders of this
alliance, there are 28 members now and carries % 38 of total
scheduled traffic.

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 SkyTeam
• The second largest airline alliance in the world was formed in
2000 by Aeromexico, Air France, Delta Air Lines and Korean Air.
• Consists of 20 member airlines.
• SkyTeam has the advantage of hubs such as
Atlanta/Hartsfield or Paris/Charles de Gaulle, each one having
a great potential for growth in infrastructural capacity, carries
%33 of total scheduled traffic.

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 OneWorld

• Third largest airline alliance in the world and was launched in

1999 by American Airlines, British Airways, Cathay Pacific and
Qantas Airways.
• Now this alliance consists of 15 airlines and is the only one
with a member in South America and Australia, carries %29 of
total scheduled traffic.

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Some World Airline Companies

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 American Airlines

Established: 1930 (Named American Airlines)

Fleet: 946 (World’s largest fleet)

157 (on order)

Destinations: 350 (in 48 countries)

Headquarter: Fort Worth,Texas, USA

Alliance: OneWorld (Founder member) 39

 Lufthansa

Established: 1926, 1955 (Named Lufthansa)

Fleet: 274 in service (by September, 2023)

163 in order

Destinations: 220 (in 100 countries)

Headquarter: Cologne / Germany

Alliance: Star Alliance 40

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 Emirates

Established: 1985

Fleet: 249 passenger

11 cargo airplane
135 in order (as of July, 2023)
Mainly widebody,
World’s largest A380 and B777 fleet,
A340, A380 and B777

Headquarter: Dubai / UAE 43

Emirates A380 Cabin Tour

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 Etihad Airlines
Established: 2003
Fleet: 79
Headquarter: Abu Dhabi/ UAE
Classes: The residence (A380 only)
First class apartments (A380 only)
First class suite (B787-9 only)
Business studio
Economy smart seat
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 Southwest Airlines

Established: 1971 (Named Southwest Airlines)

Fleet: 803 (All only Boeing 737)

Destinations: 98 (in 40 countries)

Headquarter: Dallas,Texas, USA

Business model: World’s largest Low-Cost Carrier

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 easyJet

Established: 1995

Fleet: 179 (All Airbus A319 and A320)

Destinations: 30 countries

Headquarter: Luton, UK

Business model: Low-Cost Carrier

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 Ryanair

Established: 1984

Fleet: 565 (All Boeing 737-800)

Destinations: 200 (in 33 countries)

Headquarter: Swords, Dublin, Ireland

Business model: Low-Cost Carrier

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Airline Companies in Turkey

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1993

The aircraft renewal program resulted in a fleet with

an average age of just 6,2 years. A340-300s,
RJ-100s, Boeing 737s joined the fleet. Direct flights
to Tokyo operated with three different classes of
service; First, Business and Economy Class.

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1994

On the 27 th of November, the airline attained the

status of being a state owned enterprise; under the
supervision of the Prime Ministry Directorate of the
Privatization Administration and within the scope of
Law number 4046.
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1998

With the addition B737-800 and A340-300 aircrafts,

the fleet numbered 75 aircraft of three different
types. In September, a Code Share agreement was
been signed with Malaysian Airlines on the Istanbul-
Kuala Lumpur route.
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2005

The airline made the largest aircraft purchase

transaction in its history by adding a total of 59
aircraft to its fleet. The orders included 36 A330-200,
A321-200 and A320-200 aircraft from Airbus and 23
B737-800s from Boeing.
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2006

Turkish Airlines was invited to become a member of

Star Alliance on the 4th of August, with full
membership to be realized in 2008.

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2008

Turkish Airlines established Anadolujet on the 23rd of

April, making the connection between Anatolia and
Ankara easier and more economical.

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2013
Became the airline that flies to the most countries in
the world.
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1933 : Started with 5 airplanes

2006 : The 100th airplane joined the fleet

2012 : The 200th airplane joined the fleet

2016 : The 300th airplane joined the fleet

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A 321 NEO : 35 (in service, order 57)B 777-300 ER : 33 (*)
A 330-300 : 37 (*) B737-800 : 92
A 330-200 : 13 (*) B 737-700 : 1
A 321-200 : 66 B737-900 ER : 15
A 320-200 : 11 B737-MAX 8 : 27
A 319-100 : 6
A350-900 : 11* (15 order) B737-MAX 9 : 5
B787-9 Dreamliner : 15 (*)
A 310-300F : 2 (*)
A 330-200 F : 10 (*) B777F : 8 (*)
(*) widebody A/C

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1989

The Sun Express Airlines has been established with

the equal partnership of Turkish Airlines and
Lufthansa Airlines.
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1990
First Flight. With its fleet consisting of a single
Boeing 737-300, SunExpress takes off from
Frankfurt to Antalya on April 2nd.
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1993
Fleet expansion. A fifth Boeing 737-400 was added
to the SunExpress fleet and enters service in
November 1993.
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1995
SunExpress Growth. Due to high demand, the
SunExpress fleet was expanded by a sixth aircraft
(Airbus A320), which is leased in the summer of
1995.
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2000
Four new Boeing 737-800 join the fleet in the first
quarter of the new millennium.
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2003
SunExpress expands its multi-channel - approach
and the first online booking page
www.SunExpress.com goes live.
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2010
20th Anniversary and Re-Branding. During the
airlines anniversary year six new Boeing 737-800
complement the fleet. 87
2012
New Business Area: Wet-Lease. For the first time,
SunExpress operates flights for Turkish Airlines and
AnadoluJet. 88
2014
Starting 2015, SunExpress gradually receive 50 new
Boeing 737, including the aircraft type 737MAX.
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2015
Long-Haul Wet-Lease. SunExpress operate long-
haul flights for Lufthansa under the Eurowings brand.
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SunExpress Fleet:

B 737-800 : 53

B 737 MAX 8: 9

Total: 62

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1990
Pegasus Hava Tasimaciligi A.Ş, which was founded
as a joint venture company on 1990 by Aer Lingus
Group, Silkar Yatırım ve Insaat Organizasyonu A.Ş.
and Net Holding A.Ş., entered into commercial
operation with two airplanes. 95
2005
After being acquired by Esas Holding A.Ş. owned by
Şevket Sabancı and his family in January, Pegasus
started scheduled domestic flights in November with
14 aircrafts.
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2006
International “scheduled” flights started in January.

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2008
Started “Pegasus Plus” Frequent Flyer Program.

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2008
Started to name new aircraft after baby girls recently
born to members of staff in the Pegasus ‘family’.

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2009
Made and showed film demonstrating cabin safety
using the children of Pegasus family members
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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
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Pegasus Fleet:
B 737-800 : 17
A 320-200 CEO: 8
A 320-200 NEO : 46
A321-200 NEO : 29

Total: 100

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1992
Onur Havayolları Taşımacılık A.Ş. was established
on 14 April 1992 and launched its first flight to the
Ercan Airport in Turkish Republic of Northern Cyprus
on 14 May with a type A-320 aircraft.
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1992-1993
Onur Air expanded its fleet with a second aircraft in
July 1992, third aircraft in December 1992 and the
fourth plane in April 1993.
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1994
Onur Air increased its passenger volume as a result
of cooperation with Ten Tour, one of the leading
companies in tourism sector.

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1995
Onur Air had 9 aircrafts, 1.556 seat capacity and 512
personnel.

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1996
After being fully acquired by Ten Tour in 1996, Onur
Air added three A-320 aircrafts with a larger
passenger capacity.

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1997
Onur Air had acquired the expertise to provide
service and technical consulting about type A-320
aircrafts to other airlines.
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Onur Air Fleet:

A 330 : 10
A 321 : 13
A 320 : 9

Total: 32

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It went bankrupt in June 2021.

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2001
Atlasjet Airlines was established with two aircrafts on
March 14 th and operated its first flight on June 1st.

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2004-2006
In April 2004, the ETS Group acquired 50% of the
airline’s shares from Öger Tours and then in
February 2006, took the remainder.
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2015

The company decided to move forward under the

name “Atlasglobal”.

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AtlasGlobal Fleet:

A 319 : 1

A 320 : 9

A 321 : 16

A 330 : 3

Total: 29

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2000
Freebird Airlines established in June, as a company
of Gözen Group which has been supplying ground
services to more than 85 companies since 1979.

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2001
Freebird Airlines started operations with the fleet of 3
medium range MD-83 aircraft.

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2007
Freebird Airlines continued her operations with a
fleet of 5 aircraft.
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2014
Freebird Airlines continued her operations with a
fleet of 7x A320 aircraft.

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Freebird Fleet:

2 A 320 (1 Freebird Airlines Europe)

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(Turistik Hava Taşımacılığı)

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2004
The airline was founded, and flight operations started
in April 2005.

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2018
Fleet is composed of 17 Boeing 737-800 (3 serves
for Corendon Dutch Airlines and 3 serves for
Corendon Airlines Europe).

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Quantity: 21 (3 Corendon Dutch Airlines-4 Corendon
Airlines Europe) (1 of them is B737 MAX8)

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2009
Tailwind Airlines is a joint Turkish British partnership.

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2017
Tailwind Airlines fleet is composed of 5 x B737-400
airplane.

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1996-1997
MNG Airlines founded in February 1996, has started
its operations with shipping flights to Hahn
(Germany) and Stansted (England) with medium
range Airbus A300 on November 1997.
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MNG Airlines Fleet:

A300-B4200F : 1

A 300-600 C4 : 6

A330-243F : 1

B 737-400F : 1

Total : 9 airplane

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Mavi Gök Aviation (MGA) was established
on March, 2007 in Antalya, Turkey.

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• MGA obtained its own AOC Air Operator
license in July 2022 and made its first
official flight to Budapest on 19 July 2022.

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In addition to aircraft maintenance services,
MGA provides air taxi and airline services
with Boeing 737-800, Boeing 777-300ER,
Legacy VIP and Cessna08B VIP aircraft in
its fleet.

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Fleet: 3 Boeing 777-300ER (Seating
capacity up to 428 people)
3 Boeing 737-800 (Seating capacity
up to 189 people)

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Southwind Airlines headquartered in
Antalya,started their operations in the
beginning of August with 4 aircrafts, 2
wide body Airbus A330 and 2 narrow
body Airbus A321 in the first stage. 159
 «“We established Southwind Airlines by
combining our vision and mission with our
global, young and dynamic perspective in
order to take an important position in global
civil aviation on behalf of our country.»

Southwind Airlines Chairman of the

Board
Mustafa Tolga Demirci

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«Our goal is; To provide active
service to carry our flag in the skies
on the lines of Germany, England,
France, Russia, Scandinavian
countries and Israel. We will focus
primarily on charter flights to
contribute to Turkish tourism by
cooperating with tour operators in
these countries and evaluating
today's dynamics.» 161
«Thus, we aim to increase the number of
tourists who will visit our country. In addition,
by reviewing our connections in various
countries before and after the season, we
will carry out flights between the Middle East
and Saudi Arabia and Turkey on the hajj and
umrah routes.”

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Air Anka is a Turkish cargo airline founded in
2021, headquartered in Izmir. The airline,
which made its first flight from Istanbul
Atatürk Airport to Ankara on 13 August 2022
with the flight code TAH1881, has two Airbus
A330-200 aircraft in its fleet. 165
MyCargo Airlines***
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2004
Established in 2004.

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2011
In 2011 China's HNA Group (owners of Hainan
Airlines and various subsidiaries) have taken a
majority share in ACT Airlines rebranding the
company as MyCargo.
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ACT (Mycargo) Airlines Fleet:

Boeing 747-400 : 5

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2004-2009
Established as “Baron Air Cargo” and changed the
name “Kuzu Air Cargo”. In 2008 sold to ULS Group
and changed the name to “ULS Cargo”.
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ULS Airlines Cargo provides ACMI (Aircraft, Crew,
Maintenance, Insurance) services to airlines, has the
expertise and license to carry Dangerous Goods; live
animals; perishables and any special type of cargo
that needs to be handled with special care during
transportation. 174
2015
ULS Airlines Cargo operates a fleet of three A310-
300 freighters.

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 REFERENCES

Introduction to Aviation Management, Andreas

Wald, Christoph Fay, Ronald Gleich (Ed.), LIT
Verlag Münster, 2010.

Airline Company web sites.

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ANY QUESTIONS?

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