This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Expanding Turkish Airlines Will Boost U.S. Service

Stocks in this article: AAMRQ.PKDALLCCUAL

ISTANBUL -- ( TheStreet) -- Turkey's continuing emergence as a world power is fueling expansion by Turkish Airlines, including more U.S. service.

In April 2013, the carrier will begin four-day-a-week service from its Istanbul hub to Houston. It also has plans to serve five additional U.S. cities: Atlanta, Boston, Detroit, Miami and Orlando. Currently, Turkish Airlines flies to Chicago, Los Angeles, Washington and New York Kennedy, which has three daily flights.

Turkish Airlines partners with United (UAL) and US Airways (LCC) in the Star alliance, but "nobody likes to transfer between planes," said Turkish Airlines CEO Temel Kotil, in an interview. "This is why in the U.S. many passengers stay home. It helps us to be a Star member, but our target is home to home."

As a hub, Istanbul has distinct advantages. Not only is Turkey's political and business importance growing, but also the city is an attractive tourist destination. Additionally, although Kotil said passengers don't like to connect, they sometimes have to, and from Istanbul they can connect to 187 cities in 88 countries around the world -- including Mogadishu, which is not served by any other carrier. "We link them to the world and we make a profit," Kotil said. Meanwhile, key markets in Germany and France are about three to four hours away.

Kotil noted Turkish Airlines' 187 destinations make Istanbul the second largest hub in the world in terms of single carrier destinations, after Atlanta, where Delta (DAL) has 200 destinations. Dallas, where American (AAMRQ.PK) has 171 destinations, is third.

Turkish Airlines has 370 daily departures from Ataturk International Airport and carries about 80% of the traffic.

In the first half of 2012, revenue rose 36% to $3.7 billion, capacity grew by 19% and the carrier reported a profit of $90 million. Revenue per kilometer rose 24%. The fleet of 184 Boeing and Airbus planes, averaging about six years in age, has grown from 62 aircraft in 2003. The carrier is 49%-owned by the Turkish government; its shares trade on the Istanbul Stock Exchange. Shares are up about 70% this year.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,732.11 +54.21 0.32%
S&P 500 1,953.83 +3.01 0.15%
NASDAQ 4,464.6090 +11.8170 0.27%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs