TURKISH AIRLINES STRATEGYFOR NEXT 5 YEARSTurkish airwaysare the world’s 4th best airline. Turkish Airlines have the most flight in theworld. In this report, we will mention that Turkish Airlines next 5 yearsstrategy and Leadership characteristic and threat. We are going to describe THYnext five years strategic management according to our course that we took from OmarKhalid BHATTI. Also, we are going to cover this five years strategy as aleadership concept again the course that we took name of leadership. We aregoing to examine THY’s five years strategy according to each steps that we havecourses books as a strategic management and leadership.
Strategicmanagement can be defined as the art and science of formulating, implementing,and evaluating cross-functional decisions that enable an organization toachieve its objectives. Strategic management include 3 parts. It has begun thatstrategic formulating, strategic implementing, and strategic evaluating. Otherpart of this research is leadership management concept that cover all businessway of THY. Strategic PlanAs short cut it iscompany’s game plan in strategic management. THY has good, efficient andreliable strategic plan that has been continue from company started to doairway business. We will pay attention the newest strategic plan. The neweststrategic plan of THY related with four major parts.
These are: NetworkTHY is a growingairway company every year in the market and they have find new customers to expendtheir company to feed the grow of company and maintain and hold their existencecostumer portfolio. THY’s point view of network is to reach new destinationspoint and make a new agreement with partners all over the world. Thy is alreadyone of the best airway that reaches more country with its destinations pointsfrom most of other competitors in the business. THY tries to reach moredestinations point such as Asia, Europa, Africa. THY has already put an effortto make this success in Africa from 2012 until now. Geographical Locationof IstanbulIstanbul has goodlocation that the big and profitable flights are in the world. Such as, Middleeast, Europa-Far east, Asia, Europa, America-Middle East. ?stanbul can be usedas a transfer point to reduce the distance between destinations that mentionedabove and reduce the gas price that are spent while flying at last reduce timeto reach to destinations.
Other importance Istanbul’s location is that theflexibility to use different aircraft fleet at different capacities. ?stanbulis middle point of between Asia and Europa. Endless CostumersSatisfactionTHY operatesdifferent countries and different cultures as a worldwide. This is reason thatunderline costumers satisfaction. They put costumers satisfaction top of theplan near others. THY hire dynamic, young employers and provide them technologythat helps employers for costumers’ satisfaction. THY brings new innovativelook to airways business and took all attention on the company.
Brand AwarenessTHY has been investingmore money in 2017 than previous investments to social media campaign,sponsorship agreement and advertisement with globally famous people. Thepurpose behind these steps to build strong brand image and awareness ofcostumers. CompetitiveAdvantage of Turkish AirlinesCompetitiveadvantage can be defined as anything that firm does especially well compared torival firms.
First and top consideration is location of Istanbul main based ofcompany. Geographical location of Istanbul is helping and contributing tocompany to reduce time and distance between top using destinations. Bestcompetitor of THYs are British Airlines, Air France, Emirates and Qatarairways. Location is key to deal with this competitor of company. Other factoris that all these competitors that we have mentioned above serve luxury policyfor satisfaction of costumer but THY serve also luxury staff with cheap pricesstrategy compare other luxury airway in the Europa.Vision and Missionof Turkish AirlinesVision means thatwhat do you want to become? Mission means that how will you become, or what isyour business? THY has vision and mission part. Vision is maintaining thegrowth trend above the sector average, reduce accidents to zero, perfectservice concept in the world, sales and distribution expenses below the sectoraverage, THY has local customers, and self-develop staff. To become an airlinewith management that embraces the principles of modern governance, taking intoaccount the interests of its shareholders and all its parents.
The mission ofTurkish Airlines is to be Europe’s leading and global active airline withpreferred flight safety, reliability, product range, service quality andcompetitive position.Turkish Airlinesis the national airline company of Turkey. The headquarters of Turkish Airlinesis in Istanbul. Turkish airlines have big flight networks such as Europe,Middle East, Far East, North Africa, Central Africa, South Africa, North andSouth America. Turkish air routes carried a total of 61.
2 million passengers in2015. According to the Skytrax 2016 awards, it was chosen as the best airlinein Europe at six times.THY has announcedits next five years strategy based on their investment and growth of companymarket share.
Board of directors had a meeting in their headquarters inIstanbul about forward five years strategy in 2016. The chairman of THY Mehmet IlkerAYCI was leading this meeting and announced final decision of company to themedia. Strategy based on rising number of profitability account in company.
Byexpanding to new destinations practically day by day and increasing its fleetsbecause THY has already good profitable margin in airway market and successes manyrivals. This is only and best option to expand the company as increasing itsfleets and discover and explore new destinations. The new destinations of THYincludes these countries that are Saudi Arabia, Ukraine and Croatia as a partof first step of strategic plan.Adding this 5 yearsstrategy Chief marketing officer of THY Ahmet OLMUSTUR has explained aboutdetails of the strategic plan to the public next 10 years strategy for THY. Airline’s growth plans, U.S corporate segment,future technology and sales staff. Corporate SalesGrowthTHY has 8000account and 8 percent of total revenues are coming from corporate sales end of 2015.He said the company future oriented vision is to increase the numbers ofcorporate sales from 8 percent to 20-25 percent of the total income.
Why theymeasure and compete these numbers to achieve because THY headquarters see topotential of THY flying more countries than any other competitors in thebusiness. Planes fly across the 110 countries. According to Ahmet OLMUSTUR ifthy will success fulfils the needs of the costumer, to make a decoration insome units such as, reservations, sales until the baggage claim, after thatTurkish Airlines are going to increase their percentage of corporate accountsin the next five years. Foresee the Growthand Opportunities of Location THY has twoairports in ?stanbul. First one is Atatürk airport and second one is SabihaGökçen that place on the Asia side. Atatürk airport has achieved good successpath for company, but it has not fulfilled the capacity needs, so Turkishgovernment has decided to make a new airport in north-western side of ?stanbulfor Turkish Airlines. The reason of making third airport is to fix thecongestion situation of Atatürk Airport. Other problem is to provide goodproduct to the costumer as a desire of company, but with new airport TurkishAirlines provide more product related with Arline business, than They havealready offer.
In the past years company had product-centric approach but companyis going to dedicate themselves to customer-centric approach for next 5 years.Related with customer-centric approach, company is taking action and take aseveral steps; investing on a customer relationships management program, THY isimplementing process of CRM program. Turkish airlines is taking measures in thecustomer appreciation side. For example; Turkish Airlines change to reservationsystem, because Turkish airline’s customers are complaining about thereservation and sales part. Turkish airlines will do huge investment for CRMsystem.
Turkish AirlinesNew AirportTurkish Airlinesairport is going to finish first part in May 2017. Turkish Airlines is going tohave more profit with the first new part airport its passengers capacity up to90 million. Atatürk Airport capacity is 55 million passengers. The constructioncompany is doing three phases. The end of the construction is going to finishin 2024. Turkish Airlines is going to have 150 million passenger annual afterconstruction will be finished.
Dubai and with new airport Istanbul is going tobe biggest airports in the world until someone makes better one. The newairport will work 22 hours per day, when the new one will open also to helpother airlines can be increased their frequencies, or new airline can open its hubin Atatürk Airport. The Lines that aretargeting U.S corporate travel THY fly New Yorktriple daily. They also fly Washington D.C: Boston, Chicago, Los Angeles, SanFrancisco and Houston. Before Turkish Airlines complete 2015, THY has beenstarted direct flights to Miami every day, and Turkish Airlines has been fliedsince May 2016 to Atlanta Hartsfield-Jackson Airport. They started the summer2016 program, maybe they are thinking of increasing their flights to WashingtonD.
C. There are so many daily flights to San Francisco and Los Angeles. Thissituation is going to give connection depth throughout the world.
TurkishAirlines has started to fly 45 countries in Africa. They are offering productsin terms of connection from America to Africa. In terms of location, they rankfirst place in Africa. They have started to go Maputo, Mozambique, flights andstart Juba, South Sudan. Also since 2015, THY flies every major city in theMiddle East like Tel Aviv, Dubai, Amman, Jordan, Beirut, and six cities in Iraq,THY puts their target as a rank two in middle east because of using manydestinations. In India, they fly two cities such as Mumbai and Delhi.
Turkishairlines want to increase their goals. Also, they make connections to CentralAsia such as Kazakhstan, Tajikistan, Uzbekistan, and also Russia, particularlyMoscow. Turkish Airlines prefer so close Balkan countries to Istanbul, such asBosnia, Romania and Moldova, they can connect American corporate segments toall mentioned destinations after these routes arrangement. CustomerSatisfaction Turkish airlineswant to increase customer satisfaction.
They are going to put special employeesfor American stations. Also, this employees will work 7/24. Turkish Airlinesknows America want that service level. Turkish Airlines is going to makeinvestments to give perfect service. Also, Turkish Airlines is going to investsales staff for growth.
Turkish Airlines staff is around 4,500 and around 2500 staffon those 4500 staff work in the international office. Turkish airways areworking with the British people in London, they are working with Spanish peoplein Spain. For America, Turkish Airlines work a lot of Turkish people becauseTurkish people speak English very well in America.GlobalDistribution System StrategyTurkish Airlinesuse Troya System for reservations. They bought Troya system from BritishAirways 20 years ago. Turkish Airlines use Troya system usually on domesticflights.
All domestic flights are coming from Turkish airlines own system. Theywork with GDSs to connect and work other airways all around the world. Now,instead of focusing on GDSs, They are going to focus their online channels.Only 15 percent of reservations come from thy.com for Turkish Airlines. TurkishAirlines want to increase usage of Online Channel. They are going to invest,and they have started putting 15 different languages on their online channel byAugust 2015 and they are going to work on online channel to make it better everbefore. Fuel Saving StrategyHaving one of theworld’s youngest aircraft fleets, Turkish Airlines aims to further reduce itscarbon and noise emissions by continuing its fleet-age leadership with its newfuel-efficient next-generation Airbus and Boeing aircraft planned to add to itsfleet until 2023.
Also, Turkish Airlines will do Fuel Saving with this planes. New Boeing 777Cargo PlaneTurkish Airlinesorder Boeing 777 for the passenger plane. After that, Turkish Airlines decidedto change the last two passengers planes will come from Boeing 777. TurkishAirlines will do new cargo plane from Boing 777. Because Boeing 777 planes isfuel saving. Turkish airlines are going to use Boeing 777 for cargo and Turkishairlines are going to decrease cost with it.
TURKISH AIRLINES LEADER’SFEATURES Leadership is a process whereby anindividual influences a group of individuals to achieve a common goal. We aretelling about skills approach and transformational leadership related with CEOand chairman of the board director of Turkish Airlines.SkillsApproach means that takes a leader center point of the perspective onleadership. ?t is related with skills that can be learned and developed withthe help of personality of leader. The skills approach suggest that two key ofeffective leadership, knowledge and abilities that can help to develop how tobe a affective leader. Skills approach separate three parts that are TechnicalSkill, Human Skill, Conceptual Skill.TechnicalSkill is gathered knowledge that point out proficiency in a specific type ofwork or activity.
It includes competencies in a specialized area, analyticalability, and the ability to use appropriate tools and techniques. Mehmet IlkerAYCI was born in 1971 and he has educated in Bilkent University as major ofpolitical science and political administration at 1994. After he has graduated andgone to England to work as researcher in Leads university with major politicalscience in 1995, after that he had return to get master degree from MarmaraUniversity in 1997. When he has accomplished learning part of his life, he hasstarted business life with Kurtsan Medicine C.O, The Istanbul Metropolitan Municipality,And Universal Foreign Trade Inc. After these job he has been continue differenttypes companies and important position of all these companies. As conclusionTHY has chosen him to be President of Turkish Airlines Board of Directors andChairman of the Executive Committee.
When we have covered all of his major and job related back round he hasdeveloped technical skills that bring him to Turkish Airlines Board ofdirectors and CEO position. After he has achieved top position there is no needto put more technical skills on himself instead of he can help employees whohas a technical skill issues or to develop their technical skills.Humanskills are people skills.
Human skills help leaders to help group workers inworking in collaboratively as a group to have common goals. With Human skillsLeader can provide trustable work place for employees and they feel encouragedto contribute in the planning of things that will affect them. Being a leaderwith the concept of human skills means to be a sensitive to the needs andmotivations of followers. Mehmet Ilker AYCI has developed and learned goodhuman skill to build an idea toward of THY employers. He has decided benefitsto workers such as giving 4 premium annually, extended health insurance andgood designed work area for every type of unit in thy.
Result of this action THY’semployers satisfaction rate is good. 90 percentage of workers are happyaccording to research and 50 percentage of workers want to continue to theircareer plan in Turkish Airlines.ConceptualSkills are the ability to work with ideas and concepts. A leader who hasconceptual skill do not hesitate to say his or her ideas about every subjectthat are matter for followers. The leaders can create an idea that reshape andrebuild an entire organizations.
Conceptual skills are important and central todesign a vision and strategic plan for organization. Mehmet Ilker AYCI has goodconceptual skills that have helped him to decide and take action in political crisis,economic crisis that Thy has been through in 2015-2016 while he was leading asCEO and chairman of the board director. TRANSFORMATIONALLEADERSHIP OF MEHMET ILKER AYCIAsits name give a clue, transformational leadership is a process that changes andtransforms people. It is dealing with emotions, values, ethics, standards, andlong-term goals. It is concerning on the follower’s motives, satisfying theirneeds and threating them as full human beings. Followers whom are affectingfrom transformational leadership achieve more success than leaders expect fromthem.
As we worked on THY’s leader Mehmet Ilker AYCI, we have decided his wayof leading is transformational leadership. Because his leading unique way andgiving attention on workers of thy. Satisfaction rates of employers beyond theother companies in Turkey. Mehmet Ilker AYCI knows when he gives attention onemployers and behaving them as a full human being result of that action bringout best return for company from employers.
THY’s profit margin is going wellyear by year even the obstacles that thy had in previous years.Asa conclusion we have mentioned about Strategic management and its importantsteps. Strategic management is hard and though process to apply carefully anddecide taking action without fear and hesitate to build the profitable companyand competing on global business. The best and important contribution of havinga good strategic plan gives you an imagination to get success in long-terms.Beside having a good strategic plan is not enough to apply company without goodchosen leadership.
Leadership is the key that open the door of strategic plan.When you have both importance things, you will get from life as an achievementwhat ever you want.