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- 🇹🇷 How Aviation Helps Turkey To Expand Its Soft Power
🇹🇷 How Aviation Helps Turkey To Expand Its Soft Power
Plus Qatar Airways seeks African investment and the Lufthansa-ITA deal is still in trouble
Hello there,
Hope you all survived this workweek.
Is there a better way to wind down on a Friday afternoon than having a drink and reading some hot stories from the aviation world?
Certainly not.
I brought you a super fascinating lead story this week and I’m confident it’s worth a read. Among all the mainstream aviation stories, Africa doesn’t get as much attention as it deserves.
Years ago, while working at Kiwi.com, I had to explore the African market and how we could partner up with airlines from the continent. While in certain ways, the market seemed to be quite behind other regions, it was more fascinating for me than any well-developed market.
That’s why I had so much fun researching this week’s lead story which has a significant emphasis on Africa and how Turkish companies have a massive presence there in the aviation sector.
So let’s dive into this week’s briefing.
This week, you can read about:
🇹🇷 Turkey’s aviation footprint in various regions
🇶🇦 Qatar Airways seeks investment in a Southern African airline
đź« A fun idea for Ryanair how to get more revenue
This briefing is a 10-min read.
Before we dive in, subscribe to get a piece of The Departure Times in your inbox every week.
THIS WEEK’S TOP STORY
How Aviation Helps Turkey To Expand Its Soft Power
When we think about Turkey from an aviation perspective, we mostly talk about two things:
Turkish Airlines with its massive network and
Istanbul’s 6-year-old mega-airport.
Of course, we all know there are a few other airlines and a handful of other airports in the country. But my point is that when it comes to Turkey’s impact on aviation, we mostly talk about how Turkish Airlines serves all continents and connects tens of millions of travelers through Istanbul.
Source: The Chaillot Paper 182 by EUISS
But Turkey has an even greater impact from an aviation perspective. The world’s 18th (or 19th) biggest economy uses its competence in aviation to expand its soft power through regions like the Balkans, South Caucasus, and even Africa.
I recently read a paper published by the European Union Institute for Security Studies (EUISS) on how Turkey is expanding its footprint in those regions. It argues that the country seeks to integrate more deeply into the global economy through the aviation industry.
It even cites a paper by Michał Marcin Kobierecki, named Aviation Diplomacy, saying flag carriers can serve as “instruments of soft power and public diplomacy, promoting a country’s image and fostering positive international associations with the country".
And it’s true. Turkish Airlines has a great reputation and prestige. It also actively promotes that through event sponsorships and advertisements (do you remember when Messi and Kobe were in their ads?).
The paper also argues that the airline’s extensive network shows Turkey’s aim of expanding its soft power. In the Western Balkan, the airline flies to all capital cities (including Kosovo’s Pristina) and some secondary-tertiary airports, like Tivat in Montenegro.
In Sub-Saharan Africa, Turkish Airlines serves 45 destinations in 36 countries and according to the paper, this massive network also helped to flourish economic relations between Turkey and those African countries.
Having direct flights is one thing. It doesn’t expand a country’s soft power alone. But Turkey has more aspects of leveraging its aviation industry for its geopolitical-economic ambitions.
As you will see below, there are three major Turkish “protagonists” in this story:
Summa: a Turkish constructor company established in 1989 and is headquartered in Istanbul. They are present in several countries in Europe, Africa, and South America, working on construction and infrastructure operations.
Limak: another Turkish conglomerate with a focus on construction, energy, and media, founded in 1976.
TAV Airports Holding: one of the largest airport operators. A member of the French Groupe ADP and also publicly traded on the Istanbul Stock Exchange. It has several subsidiaries, including one for TAV Technologies (for IT development) and TAV Operation Services (for airport hospitality).
The Footprint Of Turkish Aviation In Western Balkan
Turkey built up a strong economic presence in the Western Balkan countries, including several aviation projects. These are:
🇽🇰 Pristina Airport: in 2010, a Turkish-French consortium, Limak-Aéroports de Lyon, acquired a build-operate-transfer (BOT)* contract worth over €140 million. The project included the construction of a new terminal, a control tower, and road & parking infrastructure.
🇲🇰 Skopje & Ohrid Airports: the North Macedonian government signed an agreement with TAV Airports Holding in 2008 for a 20-year-long concession to operate both of the country’s international airports. The contract included a €200 million investment in the modernization of the airports.
đź‡đź‡· Zagreb Airport: As part of a consortium including Groupe ADP and other French firms, TAV Airports won the right to operate the airport in 2012 under a 30-year-long concession.
🇦🇱 Air Albania: the country’s flag carrier founded in 2018 by a consortium led by both the Albanian and Turkish governments under a public-private partnership. Turkish Airlines owns 49.12% of Air Albania’s stakes.
*A build-operate-transfer (BOT) contract means that a private entity is commissioned with the construction and operation of a certain infrastructure (in this case airports) for a definite timeframe under a concession. It is usually part of a public-private partnership.
Let me emphasize it again: most of these projects, including the airport operations by TAV Airports are business decisions and not purely political from what we know. However, having such a presence in the Western Balkan aviation sector certainly helps Turkey to strengthen its economic position and influence.
Turkey’s Aviation Interests In The South Caucasus
TAV Airports Holding also has a significant presence in Georgia. In 2005 and 2007, they won two concession contracts to operate Tbilisi and Batumi airports.
Both of these concessions will expire in 2027. The future of those concessions is unknown and therefore TAV’s future in the Georgian aviation sector. Tbilisi eyes becoming a regional hub, however, the capital city’s current airport may not be able to serve this purpose and thus the state is looking into a new airport construction.
Azerbaijan constructed a new airport in Fuzuli, in the Nagorno-Karabakh region that was inaugurated in 2021 by both Azerbaijani and Turkish presidents since 12 Turkish companies took part in the construction of Fuzuli Airport.
The Fuzuli Airport. It’s still THAT empty. Credits: AA Photo
The airport aims to serve the region that Azerbaijan retook control of in recent years. However, no scheduled flights operate from the airport yet.
The Hottest Region For Turkish Aviation: The Sub-Saharan Region in Africa
It is fair to say that the Turkish aviation footprint may be the most significant in the Sub-Saharan region of Africa.
As you may see in the following examples, Turkey’s Summa is largely present in 7 Sub-Saharan countries through airport concessions.
🇬🇠Ghana: A Turkish company was the main contractor for the Kotoka Airport’s Terminal 3 construction. In 2020, there was huge controversy due to an alleged privatization of Ghana’s airport operator company GACL to a TAV Airports-Summa consortium. The government denied the privatization and GACL and Kotaka Airport’s operations remained in Ghanaian hands.
🇬🇼 Guinea-Bissau: It was announced in 2020 that Turkey would help the African country build its new airport to replace the current Osvaldo Vieira Airport.
According to Summa’s FB Group, the constructor of the new airport under a BOT contract with a 40-year concession, the project started in 2023 and is currently under construction. Turkey also helped to modernize the current airport since 2020 until the successor is finished.
🇳🇪 Niger: Summa has two projects in the country, one was a small military airfield, Diffa Airport, where they did a runway extension to 3,000m. Thanks to this modernization, Diffa could become a civilian airport.
The Turkish firm also received a 30-year concession for Niger’s main airport, Diori Hamani Airport. As a result, the airport got a new terminal in the value of $400mn that was inaugurated in 2019.
🇸🇳 Senegal: The Turkish consortium of Summa-Limak won operational rights for Dakar’s Blaise Diagne Airport 25 years in 2016. The Turkish partners also helped to complete the airport’s construction so operations could finally begin in 2017.
The Blaise Diagne Airport. Credits: Limak
🇸🇱 Freetown Airport, Sierra Leone: In 2023, Summa took over the Freetown Airport and completed the construction of a new terminal under a $270 million BOT contract with a 25-year concession.
🇸🇴 Somalia: The Turkish government revealed plans in 2011 to help Somalia modernize its airport in Mogadishu. In 2013, the Turkish firm Favori took over the operations and also started working on the construction of airport facilities, including a new terminal that was inaugurated in 2015.
🇸🇩 Sudan: News spread in 2018 that Summa would build the new $1.2bn Khartoum Airport. While the construction started, it was shortly suspended in 2019 due to the lack of Sudanese funds. In 2021, the construction was about to be resumed but there has been no progress since then.
Sudan has also been through a massive political crisis and ongoing civil war. This delays the new Khartoum Airport project for the foreseeable future. If it will ever happen.
In conclusion, while we can see the Turkish aviation footprint in various regions, it is clear that Sub-Saharan Africa is the most significant one for them among the ones I covered.
In my opinion, the Turkish focus on the African continent’s aviation market is a wise strategic decision - both from an economic and political perspective. Despite some political crises, conflicts, and rising tensions in certain countries, the aviation market in Africa is ahead of massive growth.
And those Turkish players and the Eurasian country will enjoy their investment's sweet return.
NEWS BRIEFS
Qatar Airways Plans To Invest In A Southern African Airline
Credits: Qatar Airways
Badr Mohammed Al Meer, the CEO of Qatar Airways told at the Qatar Economic Forum that the airline is at the final stage of an equity investment in an airline in the southern part of Africa.
According to Al Meer, the deal could be announced within the next two to three weeks.
Qatar Airways has had a strategic interest in Africa in recent years, as the airline also took a 60% stake in Rwanda’s new international airport that will be opened in 2027-28.
Source: Reuters
easyJet CEO Johan Lundgren Steps Down By Early 2025
Credits: The Times
The British low-cost carrier announced that its CEO, Johan Lundgren will leave easyJet in early 2025. Lundgren will be succeeded by Kenton Jarvis, the airline’s current CFO and Board Member.
There was no exact reason given for his departure but it seems to be a “natural” departure to pave the way for something new.
easyJet shares fell 6% on the day of this announcement and their reports on Q1 profit miss - therefore, wiping out all stock price gains this year.
Source: easyJet
Lufthansa’s Pledges Are Still Not Enough For The European Commission To Approve The ITA Airways Deal
According to the latest reports, the new pledges made by Lufthansa towards the European Commission related to the ITA Airways takeover may not be enough.
The EU’s antitrust regulator still has concerns that the takeover may jeopardize the short-haul and long-haul competition connecting Italy to other countries, especially with ITA’s presence at Milan-Linate Airport.
The European Commission will make its decision on whether to approve the Lufthansa-ITA deal on June 4, therefore, the German flag carrier still has time to improve its pledges.
Source: ANSA
SOCIAL MEDIA CONTENT OF THE WEEK
Should Ryanair Implement This?
Hello, Mr. O’Leary, I have a €1 billion idea. Let’s ask for tips from passengers after every successful 737 Max landing.
Okay, it’s not my idea. But stealing ideas is as fun as suggesting charging passengers for using the toilet.
Boeing pilots after they land without killing anyone
— Jason Levin (@iamjasonlevin)
2:58 AM • May 11, 2024
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Máté Bence Tóth | Hey, I’m Máté, the creator of The Departure Times. I have three great passions: aviation, travel, and writing. I love combining these passions to create great things that can reach the sky (cheesy pun intended). I can help your business ascend by creating attractive written content. If you want to work with me, let’s have a chat. |
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