Turkish Airlines Calls Out Engine Makers on Cost

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Transcript

00:00Look, the mathematics is very simple. As IATA already informed, per passenger the profit decreases to seven dollars.

00:12Turkish airline is doing a little better than the average, and the fleet growth or the models has to be sustainable, the cost-effective.

00:25The new type of new generation aircraft, wide or narrow-body, are fuel efficient.

00:34Now, if the engine producers are trying to get back this efficiency by increasing the engine costs, then the aviation will not be sustainable.

00:49Now, look at the EBITDA margins of the airlines, look at the producers.

00:56IATA figures, this is also more than 25% of some of the engine manufacturers' margins, profit margins.

01:07So, it's not really on the cost of the engine producers.

01:13I believe that it's a little bit monopolizing using this power to increase the prices of the engines.

01:21And zooming out, you had the target just recently to hit ultimately 600 new planes, both from Boeing and Airbus.

01:30Where does this latest order leave you in terms of that target?

01:34You see now, from the manufacturers, Airbus and Boeing, we closed.

01:43This was the last part, 225 aircraft.

01:47But we are going to continue to lease, operational lease from the lessers.

01:54For example, this year, only 26, only three white bodies are coming.

01:59And with the problems in the production, both Airbus and Boeing are delaying the aircrafts.

02:08You see, some of them are delayed two years.

02:11So, then we have to find alternatives.

02:14One of the alternatives is from the market, from the lessers.

02:18So, we are not going to have big orders, but we are going to have small, 5, 10, 20 orders from the lessers.

02:29Any timeline you can give on that? Is that next year?

02:32Right now, we are in discussions with the big lessers.

02:39We might announce soon also maybe around 30 new delivery from the lessers.