Turkish Airlines Industry Analysis

916 Words Dec 25th, 2010 4 Pages
THY has some features that makes it strong in the sector. First of all, THY charges close to a discount-airline. Secondly, it offers a business class service on both overseas and domestic flights. Moreover, THY offers a frequent flyer program (an example to this is; Miles&Smiles) Fourthly, it competes with international and domestic airlines and long distance inter-city bus services (through price cuts). Finally, THY has the best landing slots (in Istanbul & Ankara) and it is the only Turkey based international carrier.
Unfortunately, THY has some weaknesses such as; acting like a legacy airline, but does not qualifying as one . Furthermore, THY is not a name brand. Thirdly, there are no strategic partnerships (high point cost per
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Also, other stakeholders (Relative Power of Unions, Governments, etc) has high power on rivalry. To sum up, competitive rivalry is high in the industry.
THY has 2 types of competitors, these are; domestic and international competitors. In the case, OnurAir and FirstAir are domestic, EasyJet, RyanAir and Lufthansa are international competitors at the year 2004.

When we have a beter look at the pricing, service quality, number of flying points and age of aircrafts, we can see where THY has some power and where it has not. For example; in pricing, domestic competitors have the advantage, but THY does not. In addition to this, International competitors does not have the advantage, but THY has. Moreover, while THY’s service quality is beter than the domestic competitors, it cannot give the same satisfaction when international competitors can. Thirdly, the number of flying points THY has, is more than domestic competitors, but less than international competitors. Furthermore, age of aircrafts of domestic competitors are younger than THYs, but cannot beat international competitors’. Finally, THY has the financial ability while domestic competitors has not, but international competitors have much more financial ability than THY.

THY has some main problems; THY acts like a legacy airline,there are low

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