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STRUCTURE OF PRESENTATION• History of Turkish Airlines

• SWOT Analysis

• Competitor Analysis

• Turkish Airlines’ Figures/Results

• Financial Risks at Turkish Airlines

• Brand Value/Sponsorship

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HISTORY OF TURKISH AIRLINES

Turkish Airlines was founded in Ankara in 1933First international flight was Ankara-Istanbul-Athens in 1947The capital of Turkish Airlines was 60 million TL in March,1956 (current capital is 1,38 billion TL)Turkish Airlines has thrice won the Skytrax awards for Europe's Best Airline, Southern Europe's Best Airline, and the World's Best Premium Economy Class Airline Seat for three consecutive years in 2011, 2012 and 2013

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• Strategic geographic position

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• Cost Advantages

• Strong Management

• Customer Loyalty

• Pricing Power

• Supply Chain

• Brand Name

• Unique Products

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WEAKNESSES

•High Staff Turnover

•Bad Acquisitions

•Lack of Scale

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OPPORTUNITIES• Emerging Markets

• Fragmented Market

• Innovation

• Online Market

• New Services

• International Expansion

• New Products

• New Markets

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THREATS

•Political Risk

•Substitute Products

•Govt Regulations

•Volatile Costs

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COMPETITOR ANALYSISDOMESTIC COMPETITORS INTERNATIONAL

COMPETITORS

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PRODUCT LIFECYCLE

T.H.Y

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Figures/Results

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FINANCIAL RISKS AT TURKISH AIRLINES

Financial Risk Management

Important risks of the THY are Currency risk, Interest rate risk and Liquidity risk

Financial risks related to the changes in the exchange rate and interest rate due to its operations.

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FINANCIAL RISKS AT TURKISH AIRLINES

Financial Risk Management

Foreign currency risk management: THY’s income is diversified among the major currencies.

Due to its currency basket THY is very flexible on position.

USD income is lower than USD expenses, THY is able to cover its USD expenses from Euro

income Same concept on USD/Euro is applicable to cover

Turkish Lira expenses

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FINANCIAL RISKS AT TURKISH AIRLINES

Financial Risk ManagementInterest rate risk management: THY’s debts with variable interest rate are dependent to Libor

and Euribor, dependency to local risks is low. THY signed interest swap contracts in order to change its

financial leasing debts from fixed interest rate to floating interest rate.

THY signed exchange contracts in order to change financial leasing debts from Euro to US dollar.

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FINANCIAL RISKS AT TURKISH AIRLINES

Financial Risk ManagementCredit risk management:

THY’s credit risk is basically related to its receivables. THY’s credit risk is dispersed and there is not important

credit risk concentration. THY manages the risk through obtaining guarantees for

its receivables.Liquidity management:

THY manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities

Capital risk management: The capital structure of the THY consists of debt, which

includes the borrowings and equity comprising issued capital, reserves and retained earnings.

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