The choice by Turkish carriers Turkish Airways and Pegasus to relinquish their slots (time home windows for takeoffs and landings) at Ben Gurion airport is just not a enterprise determination, or perhaps a safety determination. It’s a political determination by President Recep Tayyip Erdogan, whose authorities controls your complete Turkish aviation trade.
For starters, the Turkish authorities has a 49.12% stake in Turkish Airways, the world’s tenth largest airline, with a market cap $11.43 billion. Pegasus, is managed by ESAS Holdings, with a 52.81% stake. ESAS chairman is Ali Sabanci who’s near Erdogan.
Turkish socialist newspaper “Evrensel” reported final month that Pegasus, which ended the final two years with a internet revenue of $880 million, has bought 44 new plane by way of state grants. Granting corporations tax breaks is a traditional Erdogan technique.
Large procurement of planes
In 2009, the Turkish authorities launched an incentive program to obtain 100 plane with a 50% grant for 84 of them, and 15% for the remaining 16. Final December, Pegasus reached an settlement with Boeing for 200 plane: 100 on order, and an possibility for an additional 100. For those who take these 100 plane at a market value of a minimum of $100 million, then the whole funding is $10 billion. A 50% grant for 84 plane value $8.4 billion equals $4.4 billion. On the identical time, a 15% grant for 16 plane value $1.6 billion is the same as $240 million. Add them collectively and also you arrive at $4.44 billion – the value for 44 plane.
This can be a numerical illustration of Erdogan’s shut relationship with Sabanci, as with many different rich businesspeople and he makes no pretense of hiding it. Amid criticism of Israel, the Turkish president launched the second runway at Sabiha Gokcen Airport in japanese Istanbul, Pegasus’ foremost base, in December 2023. In his speech Erdogan boasted that Turkish Airways will purchase 300 planes. In response Sabanci pledged to purchase 150 new planes.
Erdogan is just not keen on these planes for the livelihood of Turkish Airways or Pegasus workers, however for the political and diplomatic leverage they permit him. For instance, simply three weeks after Globes revealed Turkey’s commerce embargo on Israel, Turkish Airways introduced the resumption of flights to the Afghan capital, Kabul – regardless of the Taliban regime. These are common weekly flights which have resumed after a three-year hiatus.
Enterprise issues don’t curiosity Erdogan within the aviation sector
However, Erdogan has, after all, taken care of every of his protectorates, the brand new one in Syria and the outdated one in Somalia. In addition to each day flights to Beirut, Turkish Airways already operates three flights per week to Damascus, and each day flights to Somalia, regardless of the unstable safety state of affairs within the African nation.
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The underside line is evident: Erdogan is just not keen on enterprise issues within the aviation sector. In spite of everything, the Tel Aviv-Istanbul route was Turkish Airways’ most worthwhile for a few years, due to its many connections to the Far East, Europe and North America. The 286 locations operated by Turkish Airways, which ranks fifth on this planet on this respect, replicate Ankara’s need to acquire political somewhat than financial beneficial properties.
Though Turkish Airways and Pegasus had fantastic slots in Israel, with glorious hours, each airways “selected”, or somewhat Erdogan selected for them, to not resume flying to Ben Gurion airport. Ankara is nicely conscious {that a} long-term ceasefire between Israel and Hamas is just not anticipated within the close to future. Simply as home political pressures led Erdogan to impose a commerce embargo on Israel, he understands nicely that his voter base wouldn’t settle for the renewal of flights to Israel. Thus, one other vital pillar in Israel-Turkey relations has been misplaced in favor of the Turkish president’s ambition to make constitutional adjustments that may enable him to run once more within the 2028 elections.
Printed by Globes, Israel enterprise information – en.globes.co.il – on April 28, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
