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FIATA WORLD CONGRESS

TURKISH CARGO AFRICA DESTINATIONS AND ROUTES

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THY DESTINATIONS

FLIES TO MORE INTERNATIONAL

DESTINATIONS THAN ANY OTHER AIRLINE

FLIES TO MORE COUNTRIES

THAN ANY OTHER AIRLINE

FLIES TO MORE COUNTRIES

AND DESTINATIONS IN AFRICA

THAN ANY OTHER AIRLINE

TURKISH CARGO AFRICA FREIGHTER AND PASSENGER DESTINATIONS

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PASSENGERDESTINATIONS

FREIGHTERDESTINATIONS

13 COUNTRIES

14 AIRPORTS

38 COUNTRIES

59 AIRPORTS

TK GROWTH IN AFRICA

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1.0%

1.9%

2.5%2.7%

%3.7

%4.3

%6.2

%6.9

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

0

10

20

30

40

50

60

2012 2013 2014 2015 2016 2017 2018 2019 Jan-July

Tho

usa

nd

To

nn

es

Tonnage TK Market Share

Turkish Cargo

Tonnage CAGR:(Africa 2012-2018)

%30.5

Market Share:

2012: %1.0

2019: %6.9

TK GROWTH IN AFRICA BY DESTINATIONS

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2012:2019:

23 Countries 36 Destinations

38 Countries 59 Destinations

CONTRIBUTION OF TURKISH CARGO TO AFRICAN ECONOMY

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Source: Seabury

Estimated Value of Cargo Carried by Turkish Cargo from

Africa in 2018:

3.4 Billion USD

Kenyan rose farmers can deliver their fresh cut roses to consumers in Amsterdam and London within

24 hours.

Fruits and vegatables of Tunisian farmers that were delivered to the airport at 6 AM can be ready for the

breakfast tables in Dubai and Kuwait next day.

Moroccon fishers can send their eels to be sold in Seoul and Tokyo

fish markets within 30 hours thanks to our Cold Chain solutions.

Critical pharma products can be delivered to Lagos, Nigeria from Basel, Switzerland less than 20

hours.

African lions can be rescued from Lviv, Ukraine to

Johannesburg within 24 hours thanks to our #missionrescue.

Turkish Airlines helped African tourism to grow via

building bridges with its massive network.

A GLOBAL GATEWAY: ISTANBUL AIRPORT

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50+COUNTRIES

IN 3 TO 5 HOURS

IST

Fast and Easy Connection

Opportunity for Africa:

Istanbul Airport

ISTANBUL AIRPORT– MEGA HUB & SMARTIST

Phase 2 - 2023Phase 1 - 2018

90 Million Passanger

2.5 Million Tonne Cargo

200 Million Passangers

5.5 Million Tonne Cargo

World’s Some Other Big Cargo Hubs

DXB & DWC 3,2 M Tonne

3,500 Daily Take-Off &

Landing

HKG 5 M Tonne

LUX 1,2 M Tonne

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Phase 1 2 Million Tonne

Phase 2 4 Million Tonne

Capacities of Some Big Carriers

2,5M 1,2M 2,6 M

Special Cargo ServicesPER – AVI – Express – E-Commerce Operation Field

WE Express

E-Commerce

Automated Storage SystemsASRS - PCHS

Augmented Reality Glasses

Unmanned Ground

Vehicles(UGV)

60.000 m²

175.000 m²

Building Floor

Total Indoor Area

Phase 1 Phase 2

100.000 m²

300.000 m²

11.3%

-3.8%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Africa FTK YoY Change Industry FTK YoY Change

AFRICA IN 2019

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Africa showed impressive growth rate during the first

seven months of 2019 with 5.3% increase in FTK

Jul:

Jul:

Source: IATA

FTK GROWTH

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Africa is the second most growing region between 2010-2019.2010Jan-Jul FTK: 100

Africa 2019Jan-Jul: 191

Industry Average: 125

80

100

120

140

160

180

200

220

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Africa Asia/Southwest Pacific Europe Latin America and Caribbean Middle East North America Industry

Middle East

Africa

Europe

Industry AverageNorth AmericaLatin America

Asia Pacific

Source: IATA

AFRICAN CONTINENTAL FREE TRADE AREA

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• World’s Largest Free Trade Area afterWTO

• Ability to trade without borders in a 3Billion USD market with 1.2 Billionpopulation

• 52% growth possibility for Intra-AfricaTrade (According to UN)

• African Union Single Transport MarketInitiative

AFRICA REVIEW

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AFRICA2018 Review

THY Destinations(38/54)

1.2 Billion People %16 of Total World Population

GDP Growth3.9%

Air Cargo Revenue Share: 2.8%

AFRICA’S AIR CARGO POTENTIAL

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Flowers30%

General23%

Fruits and Vegetables

22%

Product-based African Exports by Air Cargo in 2018

Diversified Products

2.2

1.3

0.7

0.134

0.074

0.016

-0.026

World

Africa

Asia

Latin America

North America

Oceania

Europe

Growing DemandMore than half of global

population growth will happen in AfricaPopulation Increase by 2050 (billion)

Six of the ten fastest growing economies in 2018 are from

Africa

Ghana8.3%

Ethiopia8.2%

Côte D’Ivorie7.2%

Djibouti7%

Senegal6.9%

Tanzania6.8%

Economic Potential

TURKISH CARGO EXPERIENCE

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The main challange: 5th Freedom FlightsInactive Capacity in African Routes

Blocking the Low-Cost Trade for Africa

Costing African countries possible economic contributions

We try to develop win-win partnership models with locals carriers.

Abstention of Local Carriers and Bureaucratic Barriers

Prevention of Possible Growth Process

Lack of 5th Freedom Flights to EuropeNecessity of Connecting via our Hub (Istanbul)

Increased Operational Costs

Expensive Prices

African producers and exportes are losing the competitive advantages

IMPORTANCE OF LIBERALIZATION: EUROPEAN EXAMPLE

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‘’It is safe to conclude that the consumer has benefitted from EUliberalization: number of routes and frequencies has increasedsubstantially since the early 1990s. The rise of hub-networks hasimproved connectivity both within Europe and between Europe andintercontinental destinations. In addition, there is more choice for theconsumer at the route level as well as lower fares, in particular from2000 onwards.’’ -OECD

‘’It is safe to conclude from the analysis that furtherliberalization can bring additional gains to both the aviationindustry and the economy as a whole.’’-European Comission Joint Research Center

Liberalization of European AviationIncreased Competition and High Quality of Air Transportation

More Frequencies and Capacities

Cheaper Prices for Passenger/Cargo(Family Trip Milan>Paris 1992: 1600€ 2018: 100€)

European aviation economy geared up

Map Source: FlightConnections

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