Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
Ataturk aviation cluster report
1. Mohammadmehdi Foroozesh
Necati Emre Erol
Hande Yarar
Reshma Amier Hamsa Abbas
Meghal Bhatt
Advisor:
Prof. Melike Mermercioğlu
ATATURK AVIATION CLUSTER
MICROECONOMICS OF COMPETITIVENESS
FALL 2015
Ataturk Havalimani. Digital image. Ataturk Airport Transfer. N.p., n.d. Web. Fall 2015.
<http://www.turkeytourguide.com/istanbultours/istanbulairporttransfers/ataturk-airport-transfer.html>.
2. 1
ATATURK AVIATION
CLUSTER
CONTENTS
Turkey: Country overview............................................................ 2
Assessment of country competitiveness...................................... 3
Endowments ............................................................................ 3
Macroeconomics Performance ................................................ 4
Economic Developments...................................................... 4
Social Developments............................................................ 6
Microeconomics Performance.................................................. 7
Business Environment.......................................................... 7
Cluster Development.......................................................... 11
Company Operations and Strategies.................................. 12
National Diamond............................................................... 12
Recommendations to increase country competitiveness ....... 13
Ataturk aviation Cluster.............................................................. 15
Global Aviation Industry ......................................................... 15
Turkish Aviation Industry........................................................ 16
History of the cluster .............................................................. 17
System Suppliers ................................................................... 18
Value Chain Suppliers............................................................ 18
Government agencies and Education .................................... 21
Education and Training centers ............................................. 21
Related Clusters .................................................................... 22
Cluster map............................................................................ 23
Cluster Performance and Competitors................................... 24
Cluster Diamond .................................................................... 25
Final Words............................................................................ 27
Bibliography............................................................................... 34
“The future is in the skies”
― Mustafa Kemal Atatürk
1881 –1938
3. 2
TURKEY: COUNTRY OVERVIEW
Turkey, once the center of Ottoman Empire, was established on October 29, 1923 by the
Nationalist leader Kemal Ataturk and was declared as the Republic of Turkey. After its
establishment, Turkey has shown tremendous progress that contributed to the prosperity of the
Country. Turkey's strategically important location spanning the continents of Europe and Asia,
with the African continent towards its south, and with four seas and two oceans surrounding it,
has also given it a major impetus in the region and also in the international arena. These factors
fostered its economy to become export-oriented with large foreign direct investment inflows.
Politics of Turkey takes place in a framework of a strictly secular parliamentary representative
democratic republic, whereby the Prime Minister is the head of government, and of a multi-party
system. The President is the head of state who holds a largely ceremonial role but with
substantial reserve powers.
Turkey is divided into 7 regions and 81 provinces covering a land area of 783,562 square
kilometer and with a population of 79,414,269 (37th and 18th ranked respectively). Located in the
Central Anatolia, Ankara was Ataturk's headquarters from 1920 and has been the capital of
the Republic of Turkey since its founding in 1923, replacing Istanbul following the fall of
the Ottoman Empire. Henceforward Istanbul was declared the cultural capital of the nation.
Turkey has a very diverse culture that is a blend of various elements of Eastern and Western
culture and traditions, which started with the Westernization of the Ottoman Empire and still
continues today. (US Central Intelligence Agency, 2015)
4. 3
ASSESSMENT OF COUNTRY COMPETITIVENESS
Endowments
As the most eastern country in the West and the most western country in the East, Turkey is
Surrounded by four seas and enjoys wide range of natural resources like coal, iron ore, copper,
arable land, and hydropower. Its favorable geographical position makes the country serve as a
natural hub for movement of goods, services, capital and people; although, security
developments in the neighboring states can have immediate and direct effect on Turkey’s
security. (Ateşoğlu, 2011)
With over 8.000 km of coastline and over 397 blue flag beaches, Turkey makes the
perfect spot for beach holidays. (Coastline of Turkey, 2015); In addition, with such a large
landmass, the country enjoys a variety of climates, earning the country the nickname ‘the
land of four seasons’. From the temperate climate of the Black Sea region, where 80%
of the world’s hazelnuts are produced, to the continental climate of the interior, and the
Mediterranean climates of the Aegean and Mediterranean coasts, Turkey’s weather
systems are geographically diverse. (Turkish Weather, 2015)
Furthermore, the country has a population of nearly 80 million people which forms a large
domestic market. Studies show that Turkey will experience a demographic period termed the
‘Window of Opportunity’ from 2000 to 2025. During this period, the working age population will
peak. As the number of potential workers increases during these years, the most suitable
conditions for economic growth will appear, hence the name ‘Window of Opportunity’. (Ergüder,
2007)
5. 4
Macroeconomics Performance
ECONOMIC DEVELOPMENTS
Growth: After Turkey experienced a severe financial crisis in 2001, Ankara adopted financial
and fiscal reforms as part of an IMF program. The reforms strengthened the country's economic
fundamentals and ushered in an era of strong growth averaging more than 6% annually until
2008. Global economic conditions and tighter fiscal policy caused GDP to contract in 2009, but
Turkey's well-regulated financial markets and banking system helped the country weather the
global financial crisis, and GDP rebounded strongly to around 9% in 2010-11, as exports
returned to normal levels following the recession. Two rating agencies upgraded Turkey's debt
to investment grade in 2012 and 2013, and Turkey's public sector debt to GDP ratio fell to 33%
in 2014. The stock value of Foreign Direct Investment reached nearly $195 billion at year-end
2014. Despite these positive trends, GDP growth dropped to 4.4% in 2013 and 2.9% in 2014.
(See Exhibit 1) Growth slowed considerably in the last quarter of 2014, largely due to lackluster
consumer demand both domestically and in Europe, Turkey’s most important export market.
High interest rates have also contributed to the slowdown in growth, as Turkey sharply increased
interest rates in January 2014 in order to strengthen the country’s currency and reduce inflation.
Turkey then cut rates in February 2015 in a bid to spur economic growth. (US Central Intelligence
Agency, 2015)
Composition of Economy: Turkey's largely free-market economy is increasingly driven by
its industry and service sectors (See Exhibit 1) although its traditional agriculture sector still
accounts for about 25% of employment. An aggressive privatization program has reduced state
involvement in basic industry, banking, transport, and communication, and an emerging cadre
of middle-class entrepreneurs is adding dynamism to the economy and expanding production
beyond the traditional textiles and clothing sectors. The automotive, construction, and
6. 5
electronics industries are rising in importance and have surpassed textiles within Turkey's export
mix.
Unemployment: Unemployment rate of Turkey reduced from 13% of the economically active
population in 2009 to 10% in 2014 since economic growth and business investment helped to
create jobs. Furthermore, the youth unemployment rate reduced from 23.5% of the economically
active population aged 15+ in 2009 to 19.25 in 2014 as low qualifications proved to be a barrier
to employ young people.
Turkey’s female employment rate was only 30.5% of the working age female population in 2014
although this rate increased from 24% in 2009. This is mainly due to the prevalence of a religious
and patriarchal society in Turkey’s more easterly provinces, which places greater emphasis on
women’s traditional roles of childrearing and homemaking, as well as lower female educational
attainment. (Euromonitor International, 2015)
Inflation: Inflation has been driven by loose monetary policy, which has attempted to make
up for lack of progress on structural reforms. Annual inflation raised from 6.3% in 2009 to 8.9%
in 2012 due to strong annual real GDP growth and increase in internal demand. Also, annual
inflation in 2014 was 8.9% despite of higher than Central Bank’s target that was 5%. Owing to
currency depreciation and high food prices caused inflation to stay at high level. (See Exhibit 2)
In addition, deterioration in Turkey’s socio-political environment and loose monetary policy led
to high inflation. Net budget deficit of government decreased from 6% of total GDP in 2009 to
1.5% of it in 2014 by taking higher indirect taxes and additional revenues from privatization.
Decrease in government’s net budget deficit also means that decrease in public debt from 46%
of total GDP in 2009 to 33.8% of it in 2014. (Euromonitor International, 2015)
7. 6
SOCIAL DEVELOPMENTS
According to the last Social Progress Imperative report, Turkey is currently evaluated as a
country with lower-middle social progress just below Thailand and above its eastern neighbor
countries. In the Basic Human Needs Dimension, Turkey performs best on Nutrition and Basic
Medical Care and has most opportunity to improve on the Personal Safety component. In the
Foundations of Wellbeing Dimension, Turkey scores highest on Access to Basic Knowledge but
lags on the Ecosystem Sustainability component. In the Opportunity Dimension, Turkey is
strongest on Personal Freedom and Choice and has the most room to improve on Tolerance
and Inclusion. (Porter, Stern, & Green, 2015)
Education: The Turkish government spend TRY 90 billion on education in 2015, which
equates to 17.3% of its 2015 total budget. This shows an increase of 6.7% year on year in
nominal terms in 2015, with education sector receiving one of the greatest slices of budget
expenditure, which proves the government’s commitment of bettering education standards.
(Euromonitor International, 2015)
Human Rights: Enjoying a strong parliamentary majority, the ruling Justice and Development
Party (AKP) has demonstrated a growing intolerance of political opposition, public protest, and
critical media. Government legislative and other efforts to limit corruption investigations
implicating ministers and the prime minister’s family have seriously undermined judicial
independence and the rule of law. Turkey has long-standing defects in its justice system
including concerns over judicial independence, inadequate investigations into abuses by state
actors, excessive length of proceedings, and politically motivated prosecutions. (Human Rights
Watch, 2015)
8. 7
Microeconomics Performance
BUSINESS ENVIRONMENT
Infrastructure: Turkey has a fairly well developed infrastructure system but it needs upgrades
to be more competitive. The country achieved a ranking of 53rd out of 144 countries in terms of
“Infrastructure” in the GCI 2015. The government has already outlined substantial upgrades for
its transport and healthcare infrastructure in the next 10 years through public private
partnerships. In 2013, $26 billion was set for infrastructure spending, with a third of it used for
transport infrastructure.
Higher Education: In 2014, just only 9% of the Turkish population aged 15+ had attained
higher education; increased from 8.4% in 2009, with the 2014 figure significantly below the
OECD average of 26%. Nonetheless, young people are increasingly recognizing the benefit of
tertiary education, resulting in total graduate numbers rising by 32.7% in the 2009-2014 to reach
nearly 649,000 in 2014.
Graduates from Social Sciences, Business and Law constituted 47.4% of total graduates in
2014, the largest proportion of all graduates, given the lucrative nature of these professions.
Agricultural graduates constituted just only 3.1% of total graduates in 2014, the lowest proportion
of all graduates, since Turkey is slowly moving away from an agrarian model.
Productivity: The country challenges with a rigid labor market, reflected in the very low
ranking of 127th for “Labor market efficiency” in the GCI 2015. In Turkey, the wage per hour in
manufacturing was $4.3 in 2014, whilst the average wage per hour was $5.4 in the same year,
which was significantly below the EU average of $16.7 and $14.9 respectively in 2014. Moreover,
the minimum wage per month stood at $518, again well below the EU average OF $1111,
9. 8
espousing Turkey’s low cost wage environment, which is a considerable benefit for European
neighbors, given the geographical proximity to country.
Productivity was also very low and equaled $ 27,418 in 2014, significantly below the EU average
of $76,226 due to mainly relatively uneducated workforce and labor market rigidity. (Euromonitor
International, 2015)
Research and Development: Total research and development (R&D) expenditure stood at
$7.6 billion in 2014, increased strongly by 39.8% in real terms since 2009 as government
targeted to raise the profile of the ICT sector by establishment of a medium to high technology
manufacturing base. However, its R&D intensity of 1% of total GDP İN 2014 was below the EU
average of 2%.
There is a number of incentives such as tax exemptions and tax deductions for qualifying
companies to encourage R&D activity. Moreover, the government also offers cash grants of 60%
of R&D related expenses. In 2013, a new program of incentives for startups and small and
medium enterprises (SMEs) was announced by the government. (Euromonitor International,
2015)
The number of patents granted by the National Patent Office increased from 648 in 2009 to 1023
in 2014. However, there was a limited number of patent grants at the European Patent Office,
just about 159 (13.2% were ICT related), and this is indicative of Turkey’s lack of innovation.
Foreign Direct Investment: Turkey has an appealing proposition for foreign investment
since its transition to a largely urban economy and central location as a bridge between Europe
and Middle East. Most Turkish sectors are open FDI but restrictions exist on the foreign
ownership of certain sectors, limits of 25% total shares for broadcasting and 49% for aviation
10. 9
and seafaring shipping companies. In addition, regulatory oversight are required in petroleum
and mining sectors for foreign investors.
FDI inflows increased from $8.6 billion in 2009 to $16.2 in 2011 since the steps that Turkey has
taken to highlight key sectors for investment. However, FDI inflows fell to $12.9 billion in 2013
because of retreating of mergers and acquisitions activity. Moreover, the FDI intensity in
Turkey’s total GDP was just 1.6% in 2013, up from 1.4% in 2009. Meanwhile, the country took
a more active interest in affairs outside of its borders. FDI outflows increased from $1.6 billion in
2009 to $3.1 billion in 2013. (See Exhibit 1)
The country’s delicate political phase (elections took place in June 2015) along with the
geopolitical conflicts the country engaged in, have set a climate of uncertainty that tends to hold
back private investments, especially those coming from international investors, which are crucial
for Turkey’s development. Investments have also been restrained by the uncertainty linked to a
high level of inflation (8.9 percent, well above policy targets) and by a slight decline in the
efficiency and confidence in the local financial sector.
Ease of Doing Business: Turkey ranked 55th out of 189 countries in according to World
Bank’s Ease of Doing Business 2015 report. Turkey’s best performance is “Protecting Minority
Investor” in the report as category indicators all scored better than the regional average. “Extent
of Disclosure Index” that measures transparency and “Extent of Shareholders Rights” that
measures shareholder involvement are scored well above of Europe and Central Asia. “Dealing
with Construction Permits” that has 136th rank is the worst performance of Turkey in the report.
Furthermore, the costs of notaries and business registration increased and for this reason
“Starting a Business” category moved greater than others and it fell from 65th in 2014 to 79th in
2015.
11. 10
Transparency: Corruption in Turkey is one of the issues affecting the accession of Turkey to
the European Union. In 2014, Turkey was ranked 64th of 175 countries on Transparency
International's Corruption Perceptions Index. A corruption scandal in 2013 at the heart of the
government of Recep Tayyip Erdogan has pushed Turkey to a position of instability, which has
not seen since at least 2008. (Euromonitor International, 2015)
Political Stability and Regulatory Quality: The Justice and Development Party (AKP)
that is Islamic oriented has dominated political system of Turkey since 2002 general election.
One of the founder of JDP, R. Tayyip Erdoğan, was former the Prime Minister and won the
Presidential election in August 2014. However, about the 60% of Turkish population are not
happy about an undemocratic style of governance such as restrictions on civil liberties, the
temporary ban imposed on Youtube and Twitter in 2014, and risk of retreating from secular state
that was founded by M. Kemal Atatürk. (Euromonitor International, 2015)
Turkey improved its ranking in the World Bank’s Regulatory Quality Index from 81st out of 201
countries in 2009 to 71st out of 202 countries in 2013 with the help of efforts to align Turkey with
its European neighbors in the hope of accession to EU. (Euromonitor International, 2015)
Trade Environment, Regulations and Infrastructure: Turkey has free trade
agreements with the European Free Trade Associations and many countries such as Israel,
South Korea. The country demanded to be included in the potential Transatlantic Trade and
Investment Partnership between EU and USA in 2004.
Turkey still suffers from lack of strong infrastructure system and relatively undeveloped utilities
and information/communication technology sectors. (Euromonitor International, 2015)
12. 11
Tax Environment: Turkey ranked 56th out of 189 countries for “Pay Taxes” in Doing Business
2015 which proves a relatively benign tax environment. However, this category was made less
competitive, owing to an increase in business’ social security contributions.
The total tax rate was 40.1% of commercial profits that was above the Europe and Central Asia
average of 34.9% according to Doing Business 2015. Moreover, Turkey’s rate remains at 20%
in 2015 despite of the reduction of corporation tax rate from 30% to 20% in 2006. The standard
value-added tax rate in Turkey is 18% in 2015.The time required to prepare, file, pay or withhold
taxes and contributions was 226 hours per year, comparing favorably with the Europe and
Central Asia average of 234 hours according to Doing Business 2015.
The shadow economy in Turkey accounted for 27.2% of total GDP in 2014, fell significantly from
32.2% in 2003. Although the trend was downwards, the high 2014 figure points to substantial
loss of taxes revenue for the Turkish government.
CLUSTER DEVELOPMENT
The first planned cluster development project of turkey was initiated by the Competitive
Advantage of Turkey (CAT). CAT was established as a non-governmental organization (NGO)
by the private sector leaders of Turkey together with Michael Porter’s intellectual support in 1999.
CAT defined the potential sectors and related clusters where Turkey might have competitive
advantage in the global market. These sectors were textiles, construction, food, automotive, and
tourism. In 2004, the CAT team decided to establish a local organization in Turkey. The
International Competitiveness Research Institute (URAK) was founded by main Turkey’s main
private sector leaders. Another organization leading cluster development projects in turkey was
the United Nations Development Program (UNDP). Their pilot cluster program in 2005-
Adıyaman ready wear- was successful. The EU funds during 2007-2009 were also used for
some cluster development projects in Turkey; however, most of the funded projects could not
13. 12
continue after the EU funding ended (Bulu & Yalçıntaş, 2014). Currently, a diverse range of
clusters exist in the country, mostly located in the Western part, due to a better-developed
transport, social and financial infrastructure. (See Exhibit 4)
COMPANY OPERATIONS AND STRATEGIES
Business sophistication pillar in World Economic Forum GCI concerns two elements that are
intricately linked: the quality of a country’s overall business networks and the quality of individual
firms’ operations and strategies. These factors are especially important for countries at an
advanced stage of development. According to the latest Report, the index for Turkey is
measured as 4.1; which puts turkey in 58th ranking, ahead of average emerging and developing
Europe. The best results are in quality and quantity of local suppliers, control of international
distribution, and production process sophistication. However, since 2013 there is a decrease
trend in business sophistication. (See Exhibit 3)
NATIONAL DIAMOND
14. 13
Recommendations to increase country competitiveness
SIMPLIFY BUREAUCRATIC PROCEDURES AND PROCESSES
Number of bureaucratic procedures and processes that companies deal with in Turkey are more
than it in European countries. Although they prevent corruption in business, companies need to
react quickly to compete in both domestic and international arena. Therefore, Turkish
government should lower or eliminate unnecessary and time consuming procedures and
process to enhance competition.
ENCOURAGE COMPANIES TO PAY TAXES BY PROVIDING INCENTIVES
Turkey has a problem about informal economy and for decreasing size of informal economy,
Turkey government needs to provide effective incentive or tax exemptions to companies. For
example, Republican People’s Party (CHP) promised to provide interest free working capital
loans to SMEs in exchange for paying taxes in Turkish General Election 2015.
SIMPLIFY STARTING A BUSINESS BY DECREASING MINIMUM CAPITAL REQUIREMENT
AND COMPANY REGISTRATION FEES
For development of startups, Turkish government should think about lowering of minimum
capital requirement and company registration fees that were increased recently.
PROVIDE SKILLED WORKFORCE ESPECIALLY TO ENGINEERING, CONSTRUCTION,
FINANCE AND HIGH TECH SECTOR
Turkey’s low ratio of higher education profile and brain drain leads to lack of skills in the country.
63% of employers, were surveyed by Manpower Talent Shortage Survey 2014, had difficulty in
finding the right candidate for vacancies, up from 58% in 2013. Especially engineering,
construction, finance and high tech sector suffer from skill shortages. Effective business
programs should be introduced and female employment rate, 30.5% of the working age female
population in 2014, needs to be increased.
15. 14
PROVIDE MORE INCENTIVE PROGRAMS AND TAX EXEMPTIONS FOR R&D AND MAKE
COLLABORATION BETWEEN UNIVERSITIES AND COMPANIES ON R&D
Turkey has suffered from lack of R&D investments and innovation although recently few R&D
programs provided by collaboration between universities and companies. Moreover, there was
a limited number of patent grants at the European Patent Office, just about 159 (13.2% were
ICT related). Turkish government should focus on increasing R&D investments by strengthening
collaborations.
DECREASE INEQUALITY BETWEEN WEST AND EAST DIVISIONS USING CLUSTERS
Inequality between East and West parts of Turkey creates societal and economic challenges.
Cluster based improvement has already introduced to West part and for rapid and effective
progress of East part, this approach also can be used.
DECREASE DEPENDENCY ON IMPORTED ENERGY
Turkey has high dependency on imported energy and this situation plays a decisive role on costs
of services and products. Solution for this problem is highly related with R&D investments and
innovation such as energy conservation, energy efficiency or alternative energy sources. Turkey
is not expected to sustain its growth trend till it gained independency on energy.
16. 15
ATATURK AVIATION CLUSTER
Turkey is an emerging aerospace hub for markets in Europe, the Middle East, the Caucasus,
and North Africa. With a population of nearly 80 million people and given its proximity to
developed and emerging markets, with over fifty countries within three hours flight time from
Istanbul and growing economy and population base, Turks have come to rely on domestic and
international air service increasingly over the past decade. Thanks to expansion of private airline
companies, number of domestic and international flights has significantly increased leading to a
leap in total passenger and cargo traffic. (CCG, 2014)
Ataturk aviation cluster is located 24 kilometers west of the city center and includes Ataturk
airport and the nearby neighborhoods such as Yeşilköy, Sefaköy, Bakırköy, Bahçelievler,
Yenibosna, and Florya – considering the 20-minute rule. (See Exhibit 7)
Global Aviation Industry
The global aviation industry continues to grow rapidly. Measured by revenue, the airline industry
has doubled over the past decade, from US$369 billion in 2004 to a projected $746 billion in
2014, according to the International Air Transport Association (IATA). With 6.2 trillion RPK1 and
a total of 17,354 passenger aircraft fleet, 2014 was the first year that aviation industry saw more
than 100,000 flights a day. Passenger traffic is closely related to the world GDP growth, which
is forecasted to be around 3.1% in the next 20 years, and the world’s middle class population;
which is forecasted to double in emerging economies in the same period, to reach 4,721 million
people worldwide. Having these numbers in mind, it is estimated that the world annual RPK will
double in the next 15 years. (Airbus, 2015)
1 Revenue Passenger Kilometers (RPKs) is a measures of traffic for an airline flight, calculated by multiplying the
number of revenue-paying passengers aboard, by the distance traveled
17. 16
Asia-Pacific region will lead in world traffic by 2034, followed by Europe and North America. And
there would be 91 aviation hubs connecting 95% of long-haul traffic, compared to 47 existing
today. (See Exhibit 5)
Turkish Aviation Industry
The first aviation operations in Turkey started in Sefaköy in the Istanbul suburbs in 1912. The
institutional foundations of Turkish civil aviation were established with the Turkish Aeronautical
Association in 1925. In that respect, the first civil aviation transportation started with the name
of Turkish Air Mails in 1933. In 1983, the Turkish government took the decision to liberalize the
Turkish civil aviation sector, as other transport sectors. The liberalization of the sector had a
significant impact upon its future growth. A new law was introduced in 1983 which allowed private
airlines to operate both in domestic and international routes. In 1990, the national flag carrier
Turkish Airlines was also included in the privatization process. Nowadays, Turkey’s aviation
operations are carried out within the framework of the Turkish Civil Aviation Act No. 2920 where
the administration and technical regulations as well as the aviation provisions are included.
Moreover, Turkey is a full member of the International Civil Aviation Organization (ICAO) since
1945 and of the European Civil Aviation Conference (ECAC) since 1956. It is also included in
Eurocontrol.
The aviation sector has been developing by a rate of 5% in the world and 14.5% in Turkey each
year. Undoubtedly, one can note that the growth of the aviation sector has contributed with new
job opportunities for many people in Turkey and across the world. Thus, whilst there were around
65,000 employees in the civil aviation sector in Turkey, this figure exceeded 180,000 at the end
of 2013-14. As a result of these developments, the civil aviation sector's turnover rose from 2.2
billion dollars in 2003 to 23.8 billion dollars in 2013. (Servantie, 2015)
18. 17
History of the cluster
The first aerodrome in Istanbul was opened in Yesilkoy in 1912 for military purposes. In
consequence of International Civil Aviation Convention undersigned in Chicago in 1944, it was
decided to found an international airport in Istanbul/Yesilkoy. A contract was signed with
Westinghouse Electric International Company and the IG White Engineering Corporation for the
construction of this airport in 1947. Construction began in 1949 and completed in 1953 and the
airport put into service on August 1, 1953 dedicated as Yesilkoy Airport. (Istanbul Ataturk Airport,
2015)
When single runway became insufficient with the development of international civil aviation, a
new runway was built in 1972. By the end of 90's, the airport was not able to catch up with the
increasing air traffic so there was a need of a new one Tepe Group, Akfen Group and Vienna
Airport Consortium won the BOT (Build, Operate, Transfer) contract of the Government for the
new Istanbul Ataturk Airport international terminal complex. (Airport, 2015)
In 1980, the airport was renamed Atatürk International Airport in honor of Mustafa Kemal Atatürk,
the founder and first president of the Republic of Turkey.
In 2001, TAV negotiated an amendment to their BOT Agreement with DHMI to include an
extension to complete International Terminal. Exchange for an extension to the period of time
TAV would be allowed to operate the terminal in the agreement until July 2005. (Istanbul Ataturk
Airport, 2015)
Today, Istanbul Ataturk Airport is operated by TAV under the terms of the DHMI. The Airport has
served near 57 million passengers in 2014, making it the 13th busiest airport in the world and
4th busiest in Europe in terms of total passenger traffic and the 9th busiest in the world in terms
of international passenger traffic. (The world's busiest passenger airports in 2014, 2015)
19. 18
System Suppliers1
Inside the Ataturk Airport terminals, there is a hotel with 85 rooms for overnight as well as hourly
accommodation; a total of 40 international and local restaurants, cafeterias and bars in the
departure and arrival floors; a 6985 m2 Duty Free area, 24 souvenir shops, flower store, Eight
CIP/ VIP lounges, a multi-story and an open car park, a carwash store , 6 telecommunication
centers, conference halls, baggage room, hairdresser, photography service, shoe shiners,
newsstands, two 24/7 healthcare services, pharmacy, 19 rent-a-car stores, 8 bank and
exchange offices, ATMs, 4 vale services, several kiosks, etc. There are many taxis, Havas
shuttle bus service to the city center, and a light railway (metro) to the old city area, easily
accessible from the arrival floor. (TAV, 2015)
Value Chain Suppliers
The value chain in Air transport industry consists of Manufacturers, Lessors, MRO
(Maintenance, Repair, Overhaul, Ground Handling, Catering, Airport Operators, ANSP (Air
Navigation Service Provider), Airlines, Travel Agents, and Freight Forwarders. (Pearce, 2013)
MANUFACTURERS
Almost all necessary aircraft parts are imported from abroad; mainly from USA, France, and
Italy. (ITC, 2015). There is only one manufacturer in the cluster named “Aircraft Seat Production
Industry and Trade Ltd.”. It was established in 2011 as a JV company between THY, THY
Technic, and one of Kibar Holding subsidiaries, Assan Hanil Automotive Industry and Trade Ltd.
The company’s main responsibility is to design, manufacture, provide logistics, carry out
maintenance-repair- modification, and marketing aircraft seats. The company is based at ataturk
airport. (Bolukçu, 2013).
1 All product and/or service suppliers that are not directly considered in the air transport value-chain are regarded
as system suppliers since the system would not function properly without them
20. 19
It is worth mentioning that Turkish Aviation and Space Industries Ltd. (TAI) which is designing
and manufacturing the flaps for A350XWB wide-body passenger aircraft and rear fuselage for
Airbus A319/320/321 is located in Ankare; in addition, TCI Turkish Cabin Systems Ltd. which is
founded by the THY and produces galleys for Boeing B737 and Airbus A330 is located in Sabiha
Gokcen International Airport– outside the Ataturk Aviation Cluster. (Bolukçu, 2013)
LESSORS
Commercial aircraft sales and leasing (CASL) is the business of marketing used commercial
airliners and related equipment. Companies engaged in CASL are often referred to as aircraft
lessors. Currently, there are no lessor companies available in the cluster and Europian lessor
companies (mainly AerCap from Netherlands) are the key actors. (Baldwin, 2013)
MRO
Maintenance Repair and Overhaul is performed to ensure that the aircraft is ready for the flight,
and to reduce costs without compromising on safety factor. The tasks are performed by the
Maintenance Organizations authorized by Directorate General. Today, there are 33 authorized
maintenance organizations in Istanbul; of which, 25 are located in the cluster.
GROUND HANDLING
Aircraft ground handling defines the servicing of an aircraft while it is on the ground and (usually)
parked at a terminal gate of an airport. There are 10 ground handling service providers in the
cluster and notable examples are Havas and TGS.
CATERING
TURKISH DO & CO was established in 2007 as a 50-50 JV company between DO & CO and
THY. With headquarters located in Ataturk Airport, the company provides food preparation and
handling mainly for THY and additional 60 airlines. (Sonmez, 2015)
21. 20
AIRPORT OPERATOR
As it was mentioned earlier, TAV Airports Holding was established as a joint venture between
Tepe and Akfengroups in 1997. The company has engaged in the construction of terminal
buildings; and management and operation of terminals or airports. It operates through four
segments: Terminal operations, Catering Operations, Duty Free Operations, and Ground
Handling and Bus Operations. The company also offers lounge services, IT, software and
system services, and security as well as education services. Other than Istanbul Ataturk Airport,
the firm operates Ankara Esenboğa Airport Domestic and International Terminals, Izmir Adnan
Menderes Airport International Terminal and Antalya Gazipaşa Airport in Turkey, Tbilisi Airport
and Batumi International Airport in Georgia, Monastir Habib Bourguiba International Airport and
the Enfidha – Hammamet International Airport in Tunisia, Skopje "Alexander the Great" Airport
and Ohrid "St. Paul the Apostle" International Airport in the Republic of Macedonia. (TAV, 2015)
ANSP
State Airports Administration (DHMI) is the responsible authority in Turkey for the provision of
Air Traffic Services within the entire territory of Turkey, including its territorial waters as well as
the airspace over the high seas within the Ankara and Istanbul FIRs. The state-owned firm is
located in Ankara.
AIRLINES
In 2014, Turkish Airlines, the national flag carrier airlines of Turkey, became the largest carrier
in regard to the number of flying countries by flying in 108 countries. The airlines is
headquartered at the Turkish Airlines General Management Building on the grounds of Ataturk
Airport in Bakirkoy, Istanbul. It has 219 international destinations and 45 domestic destination in
those 108 countries and hence, the fourth largest airline in regard to flight network around the
world with 264 destinations around the world. With its 32 million international passengers,
Turkish Airlines is the seventh largest airlines in the world in regard to the number of international
passengers. In the domestic airports, 22.7 million passengers used Turkish Airlines to fly from
22. 21
the 45 different destinations. The number of fleets was 296 as of 2015. Turkish Airlines is
registered as a steady profit performance over the past five years. After becoming the best airline
in Europe (for 4 years consecutively), Turkish Airlines now aims to become the best airline
company in the world with a planned fleet of more than 450 aircraft by 2023. (THY, 2015)
TRAVEL AGENTS
There are 20 IATA Member Travel Agencies located in the cluster. (Travel Agencies, 2015)
Moreover, there is a number of charter firms and CIP service provider companies there.
FREIGHT FORWARDERS
The requirements regarding air cargo transportation are set out under "SHT-150.11 Specific
Regulations for Duties, Powers and Responsibilities of Air Cargo Agents". Accordingly, the
operators intending to provide service in the field of air cargo transportation are authorized on
the basis of airports. Currently, there are 143 Regulated Cargo Agents at Ataturk Airport.
(Regulated Cargo Agents at Airports, 2015)
Government agencies and Education
A subsidiary of Ministry of Transportation, and SHGM (Directorate General of Civil Aviation) are
the main government agencies located in the cluster.
Education and Training centers
Vega Aviation, Istanbul Aviation Academy, Istanbul Flight Training Center, and Istanbul Aviation
Museum are the main Education and Training centers located in the cluster.
Moreover, it is worth mentioning that Istanbul Technical University provides undergraduate
graduate, and post-graduate degrees in aeronautical engineering. The university is located in
Maslak district which is not included in the cluster.
23. 22
Related Clusters
TOURISM
Istanbul has been seen as the magical meeting place of East and West with major attractions
derived from its historical status as capital of the Byzantine and Ottoman Empires. Other
attractions include sporting events, museums, and cultural events. Between January and May
2015, 4.5 million tourists visited Istanbul. According to MasterCard Eastern European Region
General Manager Mete Güney. It is forecasted that Istanbul will surpass Paris to become the
second-most visited city in Europe by 2016, following London. (Today's Zaman, Istanbul to
surpass Paris in number of tourists, 2014) There are 80 hotels in the Ataturk Airport cluster such
as Yesilkoy Airport Hotel, Ramada Encore Istanbul Airport Hotel, WOW Istanbul Hotel, and Tav
Airport Hotel.
MEDICAL TOURISM
Medical tourism is a developing sector in Turkey with 48 Joint Commission International (JCI)-
certified hospitals. 25 of those hospitals are located in Istanbul, and 154-bed International
Hospital is located in Yesilkoy in the cluster. Increasing number of patients from Europe and the
Middle East are coming to Turkey for their medical treatment. Medical sector in Turkey offers
more economical prices with quality of services compared to Europe and the Middle East. (CCG,
2014)
BAG TOURISM
Istanbul has become one of the biggest shopping centers of the European region with its malls
and shopping centers; moeover, the city has a giant offer for fabrics and textiles. Grand Bazaar,
which is a historical shopping mall, is famous with its streets which are full of silk products,
dresses, scarves, and fabrics. Merter, Zeytinburnu, Laleli, and Osmanbey are the other famous
districts which offer lots of wholesale and retail stores. Shopping malls such as Fly Inn Shopping
Mall, Florya Park, Olivium Outlet Center are located close to Ataturk Airport.
24. 23
LOGISTICS AND TRASPORTATION
Turkey’s geographic position makes it an important energy and logistics corridor. Transportation
and logistics sector is one of the fastest growing industries of the country, and has tripled in
value since 2002, with an average growth rate over the last five years being 20% each year.
Forecasts indicate the value of the industry could be as large as $120 billion by 2015 and Turkey
will become an important logistics base in near future. (CCG, 2014) As mentioned earlier there
is a huge number of logistics agencies active in the cluster.
BUSINESS AND TRADE
World Trade Center Istanbul is a service company established in 1982 and based in Yeşilköy,
Istanbul, Turkey, which, to promote international commerce and world trade, provides
commercial information and market research services, organizes trade delegation programs,
operates fair areas and offers office, convention and meeting halls, runs hotels within its
organization. In addition, there are eight more congress centers located in the cluster.
Cluster map
25. 24
Cluster Performance and Competitors
REGIONAL COMPETITOR
Sabiha Gökçen Airport: Sabiha Gökçen Airport (Istanbul), was opened in 2001, is operated
by a private company (HEAŞ). Between 2011 and 2014, it has 20% CAGR in terms of passenger
traffic and reached 23 million passenger (Domestic and international passenger). With its 15
million domestic passenger in 2014, Sabiha Gökçen Airport is the main domestic competitor of
Atatürk Airport.
INTERNATIONAL COMPETITORS
Dubai International Airport: Although Dubai International Airport was opened in 1960, it
has access for 260 destinations and a modern facility by ongoing investments on expansion and
modernization. Further investments on expansion of airport are projected to reach 126 million
passenger traffic in 2020.
Amsterdam Airport Schiphol: In 1920, Amsterdam Airport Schiphol was started civil
aviation operations. Although it has just one terminal, all its facilities are located in there. With
direct connections to 319 destinations and 55 million passenger traffic in 2014, it is one of the
most preferred airports in Europe.
CLUSTER PERFORMANCE
Although Istanbul Ataturk Airport had fewer destinations and airlines than Dubai International
Airport and Amsterdam Airport Schiphol, it overpassed one of them in “Passenger” category and
both of them in “On Time Flights Ratio” category. Moreover, despite the fact that there were
more flights in Amsterdam Airport than in both Atatürk Airport and Dubai Airport, they had more
passenger traffic and this situation means that average size of the flights in Istanbul and Dubai
was bigger than it in Amsterdam.
26. 25
Cluster Diamond
Recommendations to Increase the Competitiveness of the cluster
BETTER PROMOTION AND SOCIAL AWARENESS ON ADVANTAGES OF AIR
TRANSPORTATION
Better promotion and social awareness on advantages of air transportation such as time-
saving and safe transportation means needs to be improved. Air transportation has
advantages like time-saving and safe transportation compared to road transportation that is
another most preferred means of transportation since domestic distance can be high in
Turkey. These advantages of air transportation should be emphasized through better
promotion and high social awareness to popularize it among Turkish passengers. As Turkish
tourism heavily relies on summer tourism increasing domestic demand for air transportation
leads to increase revenues in business during idle tourism periods and decrease the fragility
of this sector.
27. 26
BETTER COLLABORATION BETWEEN EDUCATIONAL INSTITUTIONS-R&D CENTERS
AND DEVELOPMENT OF CIVIL AVIATION TRAINING PROGRAMS AND ORGANIZATIONS
Align with Turkey’s rapid development in the aviation sector, civil aviation training programs and
organizations should be improved to meet sector needs. With low training cost and high quality
service, Turkey can be hub for civil aviation training sector.
Although the admission quota for civil aviation training programs and organizations has
increased, it is not determined according to sector needs (The reason of increasing quota is the
general quota increase in Higher Education Institutions). Master Plan, has common vision for
both civil aviation and tourism, should be prepared for effective planning of development of civil
aviation activities and also admission quota should be planned according to Master Plan
Standards for trainers in the aviation sector should be developed and arranged according to
international standards to provide high skilled workforce to sector and also more new
technologies should be implemented in training activities.
The collaboration between university and industry based on R&D should be improved for
independency of aviation sector and sharing “know-how”. More innovative government approach
is needed for adaptation of new technologies, use of renewable energy sources and recycling
of waste.
GOVERNMENT SHOULD PROVIDE EFFECTIVE INCENTIVE PROGRAMS TO CLUSTER
Especially service companies suffer from not availability of effective incentive programs. For
example, currently they are not eligible for “Turquality”, is a national brand building program to
facilitate and support the success of Turkish brands on international arena. Introducing these
type of incentives to aviation cluster is a crucial part of development of it. Moreover, taxes should
be lowered to encourage companies for better quality service or products.
28. 27
CAPACITY EXPANSION AND MODERNIZATION OF ISTANBUL ATATÜRK AIRPORT
Estimating that Turkey will sustain the increase of aircraft and passenger traffic, more airport
capacity problem especially in Istanbul Atatürk Airport is expected in the future. Current and
potential future capacity problem should be taken into account and investments on capacity
expansion and modernization should arranged to overcome these type of problems.
DATA ABOUT CLUSTER SHOULD BE COMPLIANT WITH INTERNATIONAL STANDARDS,
KEPT IN A DETAILED, COMPARABLE AND OBJECTIVE WAY
It was very hard and challenging to find accurate, reliable and detailed data about Turkish
aviation sector. For this reason, assessment of past and future performance of the sector suffers.
Sector data should be kept in international standards and easily accessible.
Final Words
Due to lack of capacity in the existing airports in istanburl, a new international airport is under
construction in Arnavutköy district on the European side of the city. The third airport is poised to
be the largest airport in the world, with a 150 million passenger annual capacity. The first phase
of the new airport is planned to be opened on Oct. 29, 2017.
According to Hamdi Topçu, THY Chairman, when the new airport is opened Istanbul Ataturk
Airport will close as the two airports share the same air space and it is difficult for two airports to
operate as such. (Today's Zaman, 2015) This is the main threat for the cluster which grew with
growth of its main players– THY and TAV– throughout years. Cluster firms are planning to
relocate when the new airport is opened. (Sonmez, 2015)
This could be a fresh start for the cluster and government to collaborate in rebuilding a successful
aviation cluster– this time with a defined plan and strategy– to solidify istanbul’s position an
central hub in the future aviation indusry.
29. 28
EXHIBIT 1 TURKEY ECONOMY
2010a 2011a 2012a 2013a 2014a 2015b 2016b
GDP
Nominal GDP (US$ bn) 730.9 774.6 789.0 823.0 799.5 708.7 662.6
Nominal GDP (TL bn) 1098.4 1297.4 1417.1 1566.8 1749.7 1941.9 2105.4
Real GDP growth (%) 9.3 8.9 2.1 4.1 2.9 3.0 3.3
Expenditure on GDP (% real change)
Private consumption 6.7 7.7 -0.5 5.1 1.4 2.7 2.2
Government consumption 1.8 5.4 6.0 6.4 4.8 4.5 4.0
Gross fixed investment 30.2 18.5 -2.7 4.3 -1.3 2.8 4.0
Exports of goods & services 3.4 8.0 16.2 -0.1 6.9 4.7 5.7
Imports of goods & services 20.7 10.9 -0.5 8.9 -0.2 4.0 4.1
Origin of GDP
Agriculture (% of GDP) 9.56 9.16 9.02 8.47 8.15 8.10 8.00
Industry (% of GDP) 26.94 27.92 27.16 27.14 27.54 27.70 27.70
Services (% of GDP) 67.49 66.04 67.41 68.18 67.62 67.50 67.60
Population and income
Population (m) 73.3 74.0 74.7c 75.4c 76.0c 76.7 77.3
GDP per head (US$ at PPP) 15937.0 17705.0 18,066c 18,726c 19,175c 19588.0 20393.0
Recorded unemployment (av; %) 11.2 9.1 8.5 9.1 10.0c 10.3 10.0
Fiscal indicators (% of GDP)
Central government revenue 23.1 22.9 23.5 24.9 24.3 24.3 24.3
Central government expenditure 26.8 24.2 25.5 26.1 25.6 26.0 26.5
Central government balance -3.6 -1.4 -2.1 -1.2 -1.3 -1.7 -2.2
Gross public debt 43.1 40.0 37.6 37.4 35.0 33.2 32.8
Prices and financial indicators
Exchange rate TL:US$ (end-period) 1.541 1.893 1.782 2.136 2.321 3.117 3.18
Exchange rate TL:€ (end-period) 2.059 2.45 2.351 2.946 2.818 3.054 3.18
Consumer prices (end-period; %) 6.4 10.4 6.2 7.4 8.2 7.7 6.5
Stock of money M1 (% change) 25.9 19.2 11.6 27.5 12.6 16.8 12.4
Lending interest rate (av; %) 8.9 11.4 14.4 11.1 13.4 12.7 12.3
Current account (US$ m)
Trade balance -56,325 -89,160 -65,367 -79,907 -63,579 -51,587 -53,134
Goods: exports fob 120,992 142,392 161,948 161,789 168,931 153,892 156,161
Goods: imports fob -177,317 -231,552 -227,315 -241,696 -232,510 -205,478 -209,295
Services balance 16,594 20,120 22,427 22,844 25,177 22,189 21,377
Primary income balance -7,212 -7,855 -7,163 -8,986 -9,209 -12,467 -9,170
Secondary income balance 1,631 1,887 1,568 1,391 1,107 910 917
Current-account balance -45,312 -75,008 -48,535 -64,658 -46,504 -40,955 -40,010
Foreign Direct Investment (US$ bn)
Inward direct investment 9.1 16.2 13.3 12.5 12.5 12.0 13.0
Outward direct investment -1.5 -2.4 -4.1 -3.6 -7.0 -5.5 -5.8
External debt (US$ m)
Debt stock 299,183 305,388 337,096 388,243 402,979c 382,923 380,611
Debt service paid 59,205 56,240 55,390 61,596 62,472c 64,611 62,935
Principal repayments 47,660 41,327 43,316 47,731 47,281c 49,060 46,171
Interest 11,544 14,913 12,075 13,865 15,191c 15,551 16,764
Total debt/GDP 40.935 39.426 42.724 47.174 50.4 54.0 57.4
International reserves (US$ m)
Total international reserves 85,971 88,210 119,178 131,004 127,307 119,194 107,995
a Actual. b Economist Intelligence Unit forecasts. c Economist Intelligence Unit estimates.
Source: IMF, International Financial Statistics
30. 29
EXHIBIT 2 KEY MACROECONOMICAL INDICATORS 1997-2019
Source: EIU
EXHIBIT 3 SELECTED MICROECONOMIC INDICATORS
The ranking percentiles shows the percentage of countries Turkey is ahead of, in the selected index (the higher, the better)
Source: Doing Business, World Economic Forum GCI
-8.0
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
-10.0
0.0
10.0
20.0
30.0
40.0
50.0
Consumer prices (% change pa; av) Unemployment rate (%) Growth of real GDP per head (% pa)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
RankingPercentile
Ease of Doing Business Business Sophistication State of Cluster Development
ESTIMATES
31. 30
EXHIBIT 4 MAIN CLUSTERS AND THEIR LOCATION
Sector Employees % of Total
Textiles 415,135 14.5
Apparel 282,036 9.8
Processed food 268,007 9.3
Construction 206,825 7.2
Tourism and hospitality 196,499 6.8
Distribution 167,349 5.8
Metal manufacturing 161,842 5.6
Transportation and logistics 150,379 5.2
Financial services 148,056 5.2
Paper products 95,331 3.3
Telecom 91,467 3.2
Automotive 89,164 3.1
Furniture 81,343 2.8
Chemical products 55,899 1.9
Media and publishing 48,025 1.7
Construction materials 43,327 1.5
Business services 38,446 1.3
Production technology 37,230 1.3
Heavy Machinery 36,987 1.3
Plastics 30,409 1.1
Pharmaceuticals 29,135 1.0
Agricultural products 28,162 1.0
Footwear 26,710 0.9
Leather products 18,919 0.7
Oil and gas 17,209 0.6
Jewelry and precious metals 17,025 0.6
Lighting and electrical equipment 16,867 0.6
Entertainment 11,500 0.4
Tobacco 10,645 0.4
Maritime 9,691 0.3
Stone quarries 8,688 0.3
Medical devices 7,928 0.3
IT 7,176 0.2
Power generation and transmission 6,321 0.2
Instruments 6,000 0.2
Education and knowledge creation 2,934 0.1
Aerospace 2,379 0.1
Farming and animal husbandry 615 0.0
Total (As of 2011) 2,871,660
Source: E.U. Cluster Observatory, 2011; Erdil, 2013
35. 34
BIBLIOGRAPHY
Airbus. (2015). Global Market Forecast: Flying by Numbers 2015-2034. Toulouse: Airbus.
Airport. (2015). Retrieved from Great Istanbul: http://www.greatistanbul.com/airport.html
Ateşoğlu, H. S. (2011). Security of Turkey with Respect to the Middle East. Perceptions, 99-
110.
Baldwin, M. A. (2013). One to one: Aengus Kelly, CEO, AerCap. AFM (Airline Fleet
Management), 16-18.
Bolukçu, Ş. (2013). Turkish Civil Aviation Assembly Sector Report 2012. Ankara: Turkish
Union of Chambers and Commodity Exchanges (TOBB).
Bulu, M., & Yalçıntaş, M. (2014). Cluster as a Development Policy Tool: The Turkish
Experience. Economic Planning and Industrial Policy in the Globalizing Economy,
Volume 13 , 331-345.
CCG. (2014). Doing Business in Turkey: 2014 Country Commercial Guide for U.S. Companies.
Department of Commerce.
Coastline of Turkey. (2015). Retrieved from Go Turkey Tourism:
http://www.goturkeytourism.com/destinations-turkey/coastline-of-turkey.html
Erdil, E. (2013). Clusters and Cluster Policies in Turkey. Middle East Technical University ,
METU-TEKPOL Research center and Department of Economics. Izmir: INSME Ninth
Annual Meeting .
Ergüder, Ü. (2007). The window of opportunity awaiting turkey: demographics, education, and
new perspectives towards 2025. Istanbul, Turkey: Sabanci University.
Euromonitor International. (2015). Business Environment: Turkey. Passport.
EU-Turkey relations. (2015). Retrieved from EurActiv.com:
http://www.euractiv.com/enlargement/eu-turkey-relations/article-
129678#group_summary
Human Rights Watch. (2015). Country Summary: Turkey. Retrieved from Human Rights
Watch: https://www.hrw.org/europe/central-asia/turkey
Istanbul Ataturk Airport. (2015). Retrieved from Republic of Turkey General Directorate of
State Airports Authority:
http://www.ataturk.dhmi.gov.tr/havaalanlari/page.aspx?hv=1&mnu=736#.VjNJTMddEqM
Istanbul Turizm Istatistikleri Raporu. (2015). Retrieved from Tourism Life Turkey:
http://www.tourismlifeinturkey.com/newsdetail/9337-
istanbulTurizmistatistikleriRaporu.html
ITC. (2015). Retrieved from Trade Map:
http://www.trademap.org/Country_SelProductCountry.aspx?nvpm=1|792||||8803|||4|1|1|
1|1|1|2|1|1
36. 35
Pearce, B. (2013). PROFITABILITY AND THE AIR TRANSPORT VALUE CHAI. Switzerland:
IATA.
Porter, M. E., Stern, S., & Green, M. (2015). Social Progress Index. Social Progress
Imperative.
Regulated Cargo Agents at Airports. (2015). Retrieved from Directorate General of Civil
Aviation (SHGM): http://web.shgm.gov.tr/en/havacilik-isletmeleri/83-known-cargo-
agents-at-airports
Servantie, D. (2015). A Comperative Analysis of EU and Turkish Aviation Policies. Istanbul:
Economic Development Foundation (IKV).
Sonmez, B. (2015). DO&CO Program Manager. (N. E. Erol, Interviewer)
TAV. (2015). Retrieved from TAV Istanbul Ataturk Airport: http://www.ataturkairport.com/en-
EN/Pages/Main.aspx
TAV. (2015). TAV Airports Holding 2014 Annual Report. Istanbul.
The world's busiest passenger airports in 2014. (2015). Retrieved from Airport World:
http://www.airport-world.com/news/general-news/4903-top-10-airports-passenger-
traffic-in-2014.html
THY. (2015). Turkish Airlines Annual Report 2014. Istanbul.
Today's Zaman. (2014). Istanbul to surpass Paris in number of tourists. Retrieved from
http://www.todayszaman.com/anasayfa_i-stanbul-to-surpass-paris-in-number-of-
tourists_354903.html
Today's Zaman. (2015). THY chairman: İstanbul Atatürk Airport to close down. Retrieved from
Today's Zaman: http://mobile.todayszaman.com/business_thy-chairman-istanbul-
ataturk-airport-to-close-down_373989.html
Travel Agencies. (2015). Retrieved from TURSAB: http://www.tursab.org.tr/en/travel-agencies
Turkish Weather. (2015). Retrieved from Peter Sommer Travels:
http://www.petersommer.com/turkey-travel-country/turkish-weather/
US Central Intelligence Agency. (2015). Retrieved from The World Factbook:
https://www.cia.gov/library/publications/the-world-factbook/geos/tu.html
