“Atatürk Airport is an airport with fantastically designed trendy amenities. Good worth. We talked concerning the aviation trade and TAV’s targets with Serkan Kaptan, who stated, “We expect it ought to protect its existence as an airport.”
– Aviation was the sector most affected by the pandemic. How is the trade going proper now?
2019 was one of the best yr for the aviation trade on a worldwide scale. There have been 9.2 billion passengers on this planet. Flights stopped for 3 months in 2020. Earnings has dropped to nearly zero. World site visitors has dropped to three billion passengers. This yr is anticipated to shut with 7.1 billion passengers. It’s going to take 2024 for world passenger site visitors to return to pre-pandemic situations. After we take a look at the site visitors in Turkey, THY has an important energy. The connecting flight facet sounds good. As TAV, the airports we’re in are additionally rising markets.
– What number of airports do you may have as TAV?
TAV operates 15 airports in eight international locations. Handicap ticket costs for this era. The financial disaster and the reflection of the Russian-Ukrainian battle on oil elevated costs from either side. Inflation, rising oil costs after the disaster in Europe brought on airways to extend costs. Presently, ticket costs for worldwide flights have elevated tremendously. Home flights have additionally elevated quite a bit. If there isn’t a ceiling value software in home traces in Turkey, the costs will improve much more. The ticket value for one-hour flights was 90-100 {dollars}. Whereas 100 {dollars} is 1800 TL, the ceiling value for home flights is 1150 TL. So the airline would not need to fly. He needs to make use of this value just for worldwide connecting flights. For instance, he has come from overseas, he flies to Bodrum by switch as a result of he has to offer the transition to Izmir. Nevertheless it would not add further time. He places the seat capability of the identical airplane on a 1-hour worldwide flight, sells the ticket in Euros and {dollars}. Presently, aviation is doing nicely, there may be demand, however at excessive costs.
– What would the flight site visitors be like if there have been affordable ticket costs for residents to fly?
It will likely be rather more. The economic system in Turkey goes by means of a troublesome interval. With out these difficulties, if the alternate fee have been both steady or decrease, outflows would have been not less than 15-20 % larger. Presently, both a sure section or those that fly out of necessity are flying. Flight for enjoyment is far decreased.
IF THE PRICE IS LOW, THE FLIGHT IS INCREASE
– Is the lower in home flights particular to Turkey, how a lot has it decreased?
Particular for Turkey. Home flight loss in Turkey is round 25 % in comparison with 2019. There’s demand, no provide. It appears low to airline firms to fly at these costs. They use their planes on worldwide routes, which they see as extra environment friendly. In case you fly from Istanbul to Adana in 1 hour and quarter-hour, you fly to Bulgaria, Macedonia and Montenegro in the identical time and fly at 4 or 5 occasions the worth.
WE WILL CONTINUE GROWTH
– Do you may have a progress plan, will there be new airports?
TAV’s story is growth-oriented. We have been established in 1997, however our first operation began in 2000 with Atatürk Airport. We are going to proceed to develop. We will be aggressive within the Balkans, Jap Europe, North Africa, the Caucasus or Central Asia. We will certainly take a look at the alternatives that can come up in Central Asia. We’re on the lookout for a mission in Africa. We submitted a bid for Nigeria Lagos Airport. The final time we entered Kazakhstan Almaty. This will probably be our gateway to Central Asia. We are going to make investments 200 million {dollars} and improve the capability to 14 million.
ATATÜRK AIRPORT MUST STAY
– Atatürk Airport was your first pupil. How ought to or not it’s used?
Ataturk Airport is an airport with fantastically designed trendy amenities. Good worth. In our opinion, it ought to protect its existence as an airport. As a result of in extremely developed international locations, we see that such capitals go together with a couple of airport in international locations with heavy site visitors. There are 5 airports serving London. Three in Paris. With the identical logic, it is good that he stopped. However it might be a disgrace to make use of it for another objective.
– The alternate fee and prices are growing in Turkey, do you discover it troublesome to plan?
We’re struggling. We make our budgets in Euros. At that time, we have to decide an estimated alternate fee for the Euro. Most of our revenues are in Euros and {dollars}. Our funds are additionally in {dollars} and euros. Our prices in Turkey are TL. As TL depreciates with inflation, our TL prices improve and the overseas alternate stays fixed, it has a destructive impact on us. This yr, the worldwide disaster and inflation in Turkey turned every little thing the wrong way up.
– Are you planning for 2023, how will it go?
If there isn’t a new turbulence in our geography, we’ll catch the passenger and income figures in 2019. In 2024, we’ll transcend that. In 2019, our variety of passengers was 89 million. It will likely be 71-76 million this yr. In 2019, when Atatürk Airport was situated, we reached a turnover of 1 billion Euros. This yr we will probably be over 900 million Euros. Regardless of the battle, we acquired again 60 % of our Russian passengers in Antalya. We had 11 million Russian passengers in Antalya in 2019. This yr we’ll discover 6 million. Europe rapidly stuffed the hole in Russia.
THE COST OF THE NEW PROJECT IS HIGH
– Credit score prices have risen quite a bit, do you may have problem making new investments?
Sure, the prices are very excessive. We use fairness capital. Our newest mission in Turkey is Antalya. Our hire dedication to the state is 7 billion 250 million Euros. We paid 25 % of this prematurely on the finish of March. It was a troublesome time. However our benefit there may be TAV’s credibility. We didn’t delay our mortgage curiosity or fee for at some point at 15 airports.
– There have been occasions while you had difficulties?
It has been quite a bit. There have been occasions when it was troublesome to borrow in overseas foreign money, however our firm has all the time maintained its credibility, it has a bonus. We discovered a mortgage from overseas with reasonably priced rates of interest for Antalya. Now prices are rising in Europe as nicely. We closed each Antalya and Kazakhstan earlier than issues acquired worse. Now, if there’s a new mission within the new interval, the prices are actually excessive.
765 MILLION EURO INVESTMENT IN ANTALYA
– Is there a progress plan in Turkey?
The entire western airports in Turkey are operated by non-public firms by means of concession. We’re at 5 airports. We’re in Ankara, Bodrum, Antalya, Izmir and Alanya. If different airports exit to tender, we will certainly have an interest. We are going to function Antalya till 2052. We gained the tender in December 2021 with our accomplice Fraport for 7.25 billion Euros. We are going to make investments a complete of 765 million Euros, together with 600 million Euros, till the top of 2024. We hope to fee the brand new worldwide terminal in the summertime of 2024. The preliminary extra capability will improve to 65 million passengers, and in the end to 80 million passengers.
– You have been involved in Sabiha Gökçen Airport for some time, what occurred?
TRUE. In spite of everything, an airport in Istanbul attracts our consideration. However one way or the other it did not.
– Some shareholders left at Istanbul Airport. Would you wish to have a possibility there?
We’re involved in all airports that we consider will develop. We’ll positively see.