Turkey's Transportation Minister Binali Yildirim said Turkey plans to construct the world's largest airport in Istanbul, as reportedly by Interfax and Ankara. The new airport will be developed on 77 million sqm of land along the Black Sea coast of the city's European side and have a capacity of 150 million passengers p/a when completed. The four-stage project will have annual capacity of 90 million in the first stage, which will be operational in 2017. He said the tender process will start with ads in national papers on 24-Jan-2013. Mr Yildrim said Istanbul Ataturk currently handles 45 million passengers p/a while Istanbul Sabiha Gokcen accommodates 15 million passengers p/a. Mr Yildirim said, "There has been a great increase in the number of flights to and passengers in Istanbul in the past 10 years. The number of travellers has surpassed Istanbul's population by four times. The ability to improve and expand Ataturk airport is severely limited. Therefore, in order to realise Istanbul's future air-traffic potential and to provide a solution, it is evident that a new airport is needed. This will be the world's biggest airport". The government will start accepting bids for the project and hold an auction on 03-May-2013. The airport will be built in a build-operate-transfer model and the winner will get the rights to run the new airport for 25 years, Mr Yildirim said. The airport will have six runways and "at full capacity the new airport will be the largest in the world in terms of passengers". The minister had previously forecast that the project would cost USD5.6 billion. A three-tier process will determine the winning bid, which will have to first meet technical qualifications, then compete on pricing, and finally make an offer for annual rent payments to the General Directorate of State Airports Authority of Turkey that will be paid throughout the operating period, Mr Yildirim said. The highest rent payer will win, according to the minister. Meanwhile, Turkey will provide the operator with traffic and passenger guarantees to help the winning bid raise financing, Mr Yildirim said, without providing further details. Companies that have expressed an interest in the tender include TAV Airports Holding Co, Limak Holding AS and Alarko Holding AS, among others.
Turkey to build world's largest airport in Istanbul, tender process to start on 24-Jan-2013
You may also be interested in the following articles...
Onur Air: Turkey's number two LCC goes into reverse after German expansion stalls
Turkey's fifth largest airline by seat capacity, LCC Onur Air, has thrown its operation into reverse. After growing scheduled seat numbers at an average rate of 11% pa for four years, including growth at around 20% for most of 2016, it will cut capacity by 20% this winter.
A series of geopolitical events has weighed heavily on demand for air travel in Turkey, particularly in international travel. Weak trading conditions have also prompted the market leaders – national airline Turkish Airlines and LCC Pegasus – to halt their own rapid growth. Onur Air is bigger in the domestic market than it is in the international market, but much of its 2016 expansion was driven by international growth, particularly to Germany.
Onur's network faces strong competition on almost every route, particularly on international routes, and this has clearly posed a severe challenge in the face of falling demand.
Ryanair, easyJet, Norwegian, Wizz Air, Pegasus Airlines: Europe's top LCCs' collective margin drops
CAPA's previous analysis of the 3Q2016 results of Europe's big three legacy airline groups highlighted a fall in their collective operating margin, after growth in 1H2016. This report shows that Europe's five leading LCCs, in aggregate, also suffered a fall in profit and margin in the quarter.
Three of the five – Ryanair, Norwegian and Wizz Air – improved their profit margin in the quarter, but easyJet's drop in margin was heavy enough to bring down the collective result. Pegasus' margin also declined.
Nevertheless, the LCC five remain collectively far more profitable than the legacy three. Moreover Europe's two most profitable airlines, Ryanair and Wizz Air, look set to increase their margin lead this year. Even easyJet, which has had a bad year by its standards, achieved a higher margin for calendar 9M2016 than the most profitable of the big three legacy groups, which was IAG.
The divergence of results in the European sector suggest that not all airlines are following the same cycle. However the collective margin decline for the continent's leading LCCs, and its major legacy airline groups, at least gives reason to question whether or not the cyclical upswing may have run its course.