Turkish Airlines has examined the financial condition of LOT ahead of a potential bid, with the carrier the sole prospective bidder for the stake, according to Rzeczpospolita reports. The carrier reportedly conducted due diligence of LOT in Mar-2012. Poland's Treasury Ministry, which oversees state assets, said the ministry has held some discussions with Turkish Airlines in recent months, as confirmed by spokeswoman Magdalena Kobos. The treasury will pick an adviser for the sale process in May-2012, she said.
Turkish Airlines closer to acquire LOT: report
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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.
Turkish Airlines and Pegasus to take unprecedented capacity decisions as Turkey air traffic slumps
Until 2014 Turkey was one of the most reliably fast-growing air traffic markets in Europe. In 2015 passenger numbers levelled off, and in 2016 traffic is set to decline. The impact of geopolitical events, including a series of terrorist attacks, the civil war in neighbouring Syria and the failed coup attempt in Jul-2016, has weighed heavily on demand for international travel to/from Turkey.
Foreign airlines switched capacity away from Turkey in summer 2016, but the country's two largest operators – Turkish Airlines and Pegasus Airlines – continued to grow. However, following years of double-digit growth by both, Turkish Airlines and Pegasus Airlines are taking unusual steps this winter. According to data from OAG, Turkish looks set to implement year-on-year capacity cuts, while Pegasus appears to be planning flat capacity for the period from Nov-2016 to Mar-2017. It seems likely that both airlines will again cut their growth targets for 2016.
Moreover, Pegasus is seeking wet-lease customers for six of its current fleet of 73 aircraft. Perhaps more significantly, Turkish is to reschedule 165 aircraft deliveries planned for 2018-2022, cutting its planned fleet size in 2021 from 439 to 400.