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7JetSet7 Code: PGS
Status: Operational
Region: EUROPE
Country: TURKEY
Employees 721
Telephone: +90 (212) 697 7777
Fax: +90 (212) 472 7888

Click below for data links:
PGS-2004-09 - 737-82R
PGS-2009-12 EU STATS
PGS-2013-01 - UPDATE-A
PGS-2013-01 - UPDATE-B
PGS-2013-01 - UPDATE-C
PGS-2015-05 - Istanbul - Nice.jpg
PGS-2015-06 - Istanbul - Munster Osnabruck.jpg
PGS-2018-01 ACCDT 737-800 at Trabson.jpg
PGS-2018-01 INCDT 737-800 Trabson.jpg
PGS-Flight Crew 2018-06 jpg
PGS-Flight Crew 2018-06 p.jpg
PGS-Flight Crew 2018-11 p.jpg
PGS-Flight Crew Capt Eser Aksan 2018-11.jpg




Turkey (the Republic of Turkey) was established in 1923, which includes Northern Cyprus (the Turkish Republic of Northern Cyprus - figures follow), it covers an area of 779,452 sq km, its population is 66 million, its capital city is Ankara, and its official language is Turkish.

Northern Cyprus (the Turkish Republic of Northern Cyprus) covers an area of 3,355 sq km, its population is 0.2 million, its capital city is Nicosia, and its official language is Turkish.






AUGUST 1996: 1 A300B4-200 (CF6-50C2) (207), PAN AM (CVL) WET-LEASED FOR 5 MONTHS.


FEBRUARY 1997: 1 ORDER (APRIL 1998) 737-400 (28202), (ILF) 5 YEAR LEASED.


SEPTEMBER 1997: 1 737-400 HGW, (ILF) LEASED. 1 ORDER (APRIL 1998) 737-400 AND 1 ORDER (APRIL 1999) 737-800 (1ST 737NG IN TURKEY),



MARCH 1998: 2 737-400'S (PW263) (CFM56-3C1) DELIVERIES.


MAY 1998: 1 737-400 (CFM56-3C1), EX-MALAYSIA AIRLINES (MAS).

OCTOBER 1998: 3 737-400'S (26279; 26306; 29107), 6 MONTH LEASED TO WINAIR (WII).




JUNE 1999: 3 737-4Q8'S (26279; 26306; 29107), RETURNED FROM WINAIR (WII), WHO WENT OUT OF BUSINESS.

AUGUST 1999: 737-400 (26290), EX-TURKISH AIRLINES (THY), (ILF) LEASED.


NOVEMBER 1999: IN 12/99, 737-4Q8 (2653-26306, TC-AFA) TO BE OPERATED FOR K2000 AIRLINES, NEW ZEALAND. 737-4Q8 (3009-28202, TC-APP), WET-LEASED TO OMAN AIR (OMR).

DECEMBER 1999: 2 ORDERS (3/00) 737-800'S, (GECAS) (GEH) LEASED.

JANUARY 2000: 737-400 (26279) LEASED TO EUROFLY (EUY). 3 ORDERS (3/00) 737-86N'S (28639; 28642; 28643), (GECAS) (GEH) LEASED.

MARCH 2000: 1 737-86N (515-30231, TC-APL), (GEH) 7 YEAR LEASED.

APRIL 2000: 237 EMPLOYEES (INCL 180 FC, & 20 MT).

MAY 2000: 1 737-4Y0, (GEH) LEASED (1865-24687, /90 31 16), EX-(IST) 2 YEAR WET-LEASE TO JET AIRWAYS (JPL). 1 737-4YO (1859-24685, /90 32 16, TC-APR), EX-(CHS), 4 YEAR WET-LEASED TO FUTURA INTERNATIONAL (FUA).

JUNE 2000: 1 737-86N (573-28628, TC-APN), (GEH) 7 YEAR LEASED. 1 737-86N (28591, TC-APY), (GEH) LEASED, ISTANBUL AIRLINES (IST) WET-LEASED.

JULY 2000: 1 737-4YO (1731-24345, TC-APC), EX-JET AIRWAYS (JPL), (GEH) 4 YEAR LEASED.

SEPTEMBER 2000: 1 737-4YO (1731-24345, /89 28 18) WET-LEASED TO AIR ALGERIE (ALG).


NOVEMBER 2000: 1 737-4YO (1865-24687, /90 TC-APT), WET-LEASED TO KHALIFA AIRLINES (KHZ). 737-4YO (1841-24684; 6081), RETURNED TO (GEH), LEASED TO PHILIPPINE AIRLINES (PAL). 1 737-86N (573-29628, TC-APN), WET-LEASED TO AIR ALGERIE (ALG).

DECEMBER 2000: 1 737-86N (233-28591, /99 TC-APY), EX-(IST), WET-LEASED TO KHALIFA AIRLINES (KHZ).

FEBRUARY 2001: 1 737-86N (772-28639, TC-APV), (GECAS) (GEF) LEASED.

MARCH 2001: 1 737-8S3 (792-29250, TC-APH), SUNROCK (SNR) LEASED.

APRIL 2001: 490 EMPLOYEES (INCL 120 FC, 240 CA, & 40 MT).


2 737-86N (28642; 28643), (GEF) 7 YEAR LEASED, EX-CHINA AIRLINES (CHI). 2 737-809'S (117-28403, TC-APM; 29-9103, TC-APZ), EX-(CHI), (GEF) 7 YEAR LEASED. (28403) WET-LEASED TO KHALIFA AIRLINES (KHZ).

MAY 2001: 1 737-4Y0 (23981) RETURNED TO (GEF), LEASED TO SATA (SAP). 1 737-86N (28643), (GEF) LEASED. 1 A320-231 (V2500) (230), FLY FTI (FTZ) WET-LEASED.


JULY 2001: A320-232 (1411) RETURNED TO SKYSERVICE (SKB).

AUGUST 2001: 1 737-809 (117-28403, TC-APM) WET-LEASED TO ANTINEA AIRLINES (NTI).


FEBRUARY 2002: 1 + 2 ORDERS 737-86N (1056-32732, TC-API; 1104-32735, TC-APJ; 1113-32736, TC-AAP), (GECAS) (GEF) LEASED.


(TELEPHONE: (212) 663 29 34). (FAX: (212) 663 66 86).

APRIL 2002: 645 EMPLOYEES (INCLUDING 171 FC; 259 CA; & 78 MT).

(IATA) Code: (PC). (ICAO) Code: PGT - (Callsign - SUN TURK).



( SITA: ISTSP1L. (FAX: +90 (212) 573 9627).


737-82R (CFM56-7B26) (224-29329, TC-APG), wet-leased to Myanmar (BRM).

October 2002: Offers 5 737-800's for wet-lease.

November 2002: 737-86N (1103-32735, TC-APJ), wet-leased to Air Sofia.

December 2002: Sofia to Dubai (weekly) for Air Sofia.

March 2003: 737-42R (2997-29107, TC-APD) & 737-86N (233-28591, TC-APY), returned from Khalifa Airlines (KHZ). Repossessed 4 737-4Q8's which were wet-leased to (KHZ).

April 2003: 737-4Q8 (2221-26279), returned to (ILF).

July 2003: 737-82R (29329) returned from Myanmar International Airlines (BRM).

September 2003: 737-86N (CFM56-7B24) (573-28628, TC-APN), wet-leased to Air Algerie (ALG).

October 2003: Will begin domestic services this winter.

737-82R (29329) wet-leased to Myanmar International Airlines (BRM) again.

April 2004: 645 employees (incl 171 FC, 259 CA, & 78 MT).

( (

737-86N (28628) wet-leased to Air One (ADH).

May 2004: 737-86N (28620), ex-SunExpress (SNS), GECAS (GEF) leased.

June 2004: 737-82R (29329) returned from Myanmar International Airlines (BRM).

July 2004: 737-8S3 (29250, TC-APH) wet-leased to Air Algerie (ALG).

November 2004: 330 employees.

1 737-42R (29107, TC-APD) wet-leased to AtlasJet (ABE).

December 2005: Pegasus Airlines (PGS), a Turkish leisure carrier, said it ordered 6 737-800s valued at $406.5 million at list prices and includes 6 options. Deliveries begin in 2008. (PGS) already operates a fleet of 12 737-800s and 2 737-400s.

April 2006: Pegasus Airlines (PGS) provides holiday charter flights to the Turkish resorts from various points in northern and western Europe as well as airplanes and crew wet-leasing on demand.

Employees: 721 (including 130 Flight Crew (FC), 200 Cabin Attendants (CA); & 80 Maintenance Technicians (MT)).

(IATA) Code: 1L. (ICAO) Code: PGT - (Callsign - SUNTURK).


Parent organization/shareholders: Enternasyonel Turiem (ESAS) Holding (85%); & Silkar (15%).

Main Base: Istanbul Ataturk International (IST).

Hub: Antalya International (AYT).

February 2007: Pegasus Airlines (PGS) will start a 2x-weekly, Istanbul Sabiha Gokcen to Zurich service on March 20. (PGS) said it will open new routes to Germany, Austria and Denmark this summer. It operates 16 737s, including 12 737-800s, to 16 destinations. It will take delivery of 12 new 737-800s through the end of next year.

March 2007: 737-8FH (35094, TC-AAK), (RBS) Aerospace leased.

April 2007: Pegasus Airlines (PGS) purchased 20% of IzAir (IZM). (PGS) management retains control of its operations.

June 2007: Starts Ankara to Vienna, using 737-800s, Istanbul Sabiha Gokcen to Nuremberg using 737-500s, to Vienna using 737-400s, Ixmir to Vienna, and Jayseri to Vienna, using 737-800s.

November 2007: (KLM) Engineering & Maintenance (E&M) was contracted by Pegasus Airlines (PGS) to overhaul 5 (CFM56-7B)s +2 options. (KLM) (E&M) will provide 2 leased engines to (PGS) as part of the deal.

The Dutch Transport and Water Management Inspectorate levied a €30,000/$43,740 penalty on (TAP) Portugal, and a €15,000 fine on (PGS) for repeated abuse of the legally set special noise regime, during the night and early morning period at Amsterdam Schiphol (AMS). Compliance with the relevant environmental standards at (AMS) has been tightened since July, following an agreement between Airport Coordination Netherlands, the Dutch slot coordinator, and the Inspectorate of the Ministry of Transport & Public Works. In September, the (IVW) imposed a €30,000 penalty on Fly Air (FLM), and €15,000 penalties on Alitalia (ALI), Delta Air Lines (DAL), Corendon Airlines (CDN) and Air Cairo (AOX). In July, Clickair (CLK) received administrative fines of €60,000 and €15,000, and Atlas Air (TLS) 1 penalty of €15,000.

737-82R (35700, TC-AAE), delivery.

January 2008: 737-82R (35701, TC-AAH), delivery.

May 2008: The Turkish government is planning to build a 3rd airport in Istanbul, which already is the home of Ataturk International (IST) and Sabiha Gokcen (SAW). Plans soon will be announced for the facility, which will be located on the European side of the Bosporus.

September 2008: Pegasus Airlines (PGD) will double its 737-800 order to 24, it said in a statement cited by "Reuters." (PGS) ordered 12 airplanes in 2006 and intends to operate 30 by 2013.

October 2008: Pegasus Airlines (PGS) added a 5th weekly, Istanbul Sabiha Gokcen to London Stansted.

January 2009: 737-58E (TC-AAF), is painted as a "logojet" advertising Turkish newspaper "Referans" - - SEE PHOTO - - "PGS-737-58E-JAN09."

February 2009: Pegasus Airlines (PGS) took delivery of a 4th new 737-800, part of an order for 24 of the type. The airplane will be operated by its IZair (IZM) subsidiary.

Destinations: From Istanbul Sabiha Gökçen International Airport to Adana, Ankara, Antalya, Bodrum, Dalaman, Diyarbakır, Gaziantep, Hatay, İzmir, Kayseri, Malatya, Mardin, Trabzon, Van, Lefkosa, Stuttgart, Munich, Dusseldorf, London, Amsterdam, Zurich, Copenhagen and Tel Aviv.

737-82R (35702, TC-AAJ), delivery.

March 2009: Pegasus Airlines (PGS) will launch a weekly, Bodrun to London Stansted (STN) flight on May 4 and will add 2x-weekly frequencies to its current 5x-weekly, Istanbul Sabiha Gokcen to (STN) service on April 1.

April 2009: Pegasus Airlines (PGS) will launch a daily, Istanbul Sabiha Gokcen to Brussels service on June 22 aboard a 737.

May 2009: Pegasus Airlines (PGS) parent, (ESAS) Holding confirmed that its stake in Air Berlin (BER) is 15.3%, making it (BER)'s largest shareholder. (PGS) Chairman, Ali Sabanci will join the (BER) board.

June 2009: 737-82R (35984, TC-AAL), delivery.

August 2009: Pegasus Airlines (PGS) is planning an Initial Public Offering (IPO) for the 2nd half of next year, Chairman, Ali Sabanci said. (PGS) parent (ESAS) Holding is Air Berlin (BER)'s largest shareholder at 15.3%.

737-82R (38173, TC-AAN), delivery.

September 2009: Pegasus Airlines (PGS) increased its order for 737-800s in June, Chairman, Ali Sabanci confirmed in Istanbul, although he declined to reveal the number of airplanes involved.
Sabanci also said (PGS) is in negotiations with Boeing (TBC) for more airplanes. "Our dealings with (TBC) consist of 5 tranches of orders and we are currently in the 5th one, to further increase our order book with them. The 4th tranche was the contract signed in June," he said, adding that (PGS) intends to announce the details next year as it prepares to launch an Initial Public Offering (IPO) in the 2nd half of 2010.

"By 2015, Pegasus (PGS) and its affiliate airline IZair (IZM) will operate a fleet of 41 owned 737s, including 1 737-400 and 40 new 737-800s, if we give back all our leased airplanes," he said. The pair currently flies 24 airplanes, of which 17 are leased. (PGS) owns 1 737-400 and 6 737-800s, which were part of its 1st (TBC) order placed in 2005 for 6 firm 737-800s plus 6 options. (PGS) topped up its order in 2007 and at the end of 2008 to 18 firm and 6 options, indicating that its June commitment is for 16 airplanes.

Sabanci also confirmed that (ESAS) Holdings, which controls (PGS) and 61% of IZair (IZM), increased its stake in Air Berlin (BER) to 18.5% from 15.3% in June.

Air Berlin (BER) and (PGS) started their cooperation by cross-linking their websites. Passengers will be able to book 17 additional connections from Germany to Turkey as well as 26 routes within Turkey. (PGS) belongs to (ESAS) Holding, the 2nd-largest industrial and financial group in Turkey. (ESAS) also is (BER)'s largest shareholder with an 18% stake.

October 2009: Pegasus Airlines (PGS) has formed a joint venture (JV) with state-run, Kyrgyzstan Airlines (KYR), (PGS) General Manager, Sertac Haybat confirmed. (PGS) will have a 49% stake in the (JV) to be named "Kyrgyz Pegasus Airlines (KYR)/(PGS)," which should become operational next month and will begin by offering low-fare flights from Bishkek to Russia, China, Kazakhstan, and Turkey aboard 737NGs wet-leased from (PGS).

"We want to make Bishkek a hub in Central Asia for flights from east to west. Furthermore, the Bishkek to Istanbul route offers connections through our Sabiha Gokcen base to many European destinations we serve," Haybat said, adding that the (JV) offers a way to expand in markets protected by single-designation agreements, "which favor 1 certain airline in Turkey."

Airlines certified by Kyrgyzstan authorities (the (JV) will use (PGS)'s Turkish Air Operator Certificate (AOC)) are banned from operating to the European Union (EU). However, Haybat strongly dismissed assertions that Kyrgyzstan Airlines (KYR)'s inclusion on the (EU) blacklist will affect the (PGS) image negatively. "We believe the contrary," he argued. "The (PGS) airplanes and its operation by (PGS) flight crew (FC) and maintenance by (PGS) technicians (MT) is the seal of safety in this (JV). (PGS) has an excellent track record when it comes to safety and this will be the same in the new (JV)."

(PGS) will fly from Istanbul (SAW) to the culturally important center of Konya starting later this month. (PGS) will start international flights to Frankfurt.

November 2009: French slot coordinator (COHOR) said it redistributed a pool of 6,672 slots at Paris Orly for the summer 2010 season, with half awarded to carriers with new entrant status and half to incumbents. New entrant slots were allocated to easyJet Switzerland (TEB) for 2 daily flights to Venice, Vueling Airlines (VUZ)/(CLK)`and Pegasus Airlines (PGS) for one daily flight each and to Wizz (WZZ) for 4x-weekly flights to Bratislava. Incumbent slots were allocated to (TAP) Portugal for 3x-daily flights, Iberia (IBE) for 1x-daily flight, Midex Airlines (MIX) for 3x-weekly flights, and Air Algerie (ALG) for 1x-weekly flight.

March 2010: 737-82R (40871, TC-AAS), delivery.

April 2010: Pegasus Airlines (PGS) will launch 4x-weekly, Istanbul Sabiha Gokcen to Marseilles service on May 1.

Air France Industries and (KLM) Engineering & Maintenance signed a one-year deal with Pegasus Airlines (PGS) for maintenance of 9 (CFM56-7B)s on a turnkey basis.

2 737-82Rs (40872, TC-AAT; 40873, TC-AAU), deliveries.

August 2010: Pegasus Airlines (PGS) will launch daily, Istanbul Sabiha Gokcen to Sofia service on October 1.

November 2010: Pegasus Airlines (PGS) will operate seasonal 3x-weekly, Izmir to London Stansted service May 1 to October 29, 2011.

January 2011: Turkish Technic reached a Component Pool Services Agreement with Pegasus Airlines (PGS) covering (PGS)'s 737NGs for 10 years. It will also provide 15 "C" maintenance checks to (PGS) and IzAir (IZM) fleets as well as seven re-delivery checks, 7 landing gear overhaul and painting services for 10 airplanes in 2011.

April 2011: (GECAS) (GEF) signed a sale/leaseback agreement with Pegasus Airlines (PGS) covering the delivery of 4r new 737-800s slated to arrive this month.

May 2011: Pegasus Airlines (PGS) launched 3x-weekly, London Stansted to Istanbul Sabiha Gokcen to Tehran service on May 15.

Teledyne Controls has begun to integrate its Wireless Groundlink End-to-End Network Solutions System onboard all Pegasus Airlines (PGS) airplanes. (PGS) said that with this system, data will be downloaded in 15 minutes, enabling flight information to be shared with company headquarters after every flight.

August 2011: Lufthansa Systems (LHS) inked a 5-year contract with Pegasus Airlines (PGS) and subsidiary IZair (IZM) to implement its Lido/Flight solution aimed at optimizing (PGS)'s flight planning processes.

(PGS) will launch 3x-weekly, Istanbul Sabiha Gokcen to Donetsk 737 service on September 6.

September 2011: Pegasus Airlines (PGS) and Air Berlin (BER) reached a code share agreement under which passengers can book flights between Dusseldorf, Cologne/Bonn, Munich and Berlin, and Istanbul (IST), as well as services between (IST) and Izmir and Ankara, in combination with flights from Germany to (IST). The 2 airlines plan to launch a charter partnership on November 1 and operate as "Air Berlin Turkey."

October 2011: Pegasus Airlines (PGS), the largest shareholder in Air Berlin (BER), begins 737-800 flights to Pristina in Kosovo. It will become (PGS)’s 30th international destination, having just launched service to Skopje in nearby Macedonia. Other new routes include Kharkiv and Donetsk in the Ukraine, all from Istanbul’s Sabiha Gokcen airport. (PGS) hopes to win more flight rights, which aren’t easy
to obtain, to the former Soviet region as well as in the Middle East. More than a third of (PGS)’s passengers, are connecting. And unlike more orthodox Low Cost Carrier (LCC)s like Ryanair (RYR) and Wizz Air (WZZ), it does offer Global Distribution System (GDS) distribution, cargo carriage and code shares, and has a loyalty program.

Turkish (THY) Technic was selected by Pegasus Airlines (PGS) to provide 1 737-500 re-delivery check and 1 737-400 "C" check.

November 2011: Air Berlin Turkey (ABT), the new joint venture (JV) between Air Berlin (BER) and Pegasus Airlines (PGS), began operating flights between Antalya and Stuttgart from November 1.

(BER) and (PGS) will embark on a charter partnership and dedicate 2 737-800s for these services. The airplanes will carry their own logo, featuring the word "Turkey" in cursive above the (BER) script.

Its network is set to expand to 14 German cities, which will be served with 31x-weekly flights during the Northern Winter schedules. Destinations include Berlin, Bremen, Cologne/Bonn, Dresden, Düsseldorf, Frankfurt, Hamburg, Hanover, Leipzig/Halle, Munich, Münster/Osnabrück, Nuremberg and Paderborn.

Pegasus (PGS) and (BER) started code share flights in September.

November 2011: Somon Air (SML) signed a base maintenance services agreement contract with Pegasus Airlines (PGS) for 1 737-800 "C" check.

Turkish Technic (THY) won a base maintenance services agreement from Pegasus Airlines (PGS) for 4 737-800 "C" checks. Maintenance will be carried out within the 4th quarter 2011 and the 1st quarter of 2012.

December 2011: Turkish Technic (THY) received an extended and expanded 737NG wheel & tire services contract with Pegasus Airlines (PGS), through to 2017. The deal will expand to cover airplanes with carbon brakes, in addition to those with steel brakes.

January 2012: Pegasus Airlines (PGS) has added new routes from its growing Istanbul Sabiha Gökcen hub:
Ankara Esenboga to Erbil: 3x-weekly 737-800 service has started on October 25;
Istanbul Sabiha Gökcen to Almaty: 2x-weekly 737-800 service starting on January 23;
Istanbul Sabiha Gökcen to Donetsk: 4x-weekly 737-800 service has started on September 6;
Istanbul Sabiha Gökcen to Pristina: 3x-weekly 737-800 service has started on October 17.

(PGS) has, however, given up its Istanbul Sabiha Gökcen to Sofia route on October 29. (PGS) and Air Berlin (BER) have entered into a code share agreement as of November 1 covering all flights between Germany and Turkey as well as some selected domestic routes in Turkey.

Receives its 1st 737-800 with special Boeing (TBC) "Sky Interior." It was named "Sevde Nil D."

February 2012: Pegasus (PGS) will begin four times a week from April 2nd on domestic flights from Istanbul Sabiha Gokcen Airport to Sanliurfa. Turkish Airlines (THY) serves Sanliurfa from Istanbul Ataturk Airport.

April 2012: Pegasus Airlines (PGS) is steadily expanding its network with a focus on nearby Eastern Europe as demand in the Turkish market continues to grow rapidly. (PGS) operates an extensive European and domestic Turkish network while also offering some services to the Middle East and Central Asia. Until recently, (PGS)’ focus has been primarily on its domestic Turkish and international routes to Western Europe, but this is beginning to change. Eastern Europe is becoming (PGS)' main focus with a number of new destinations added in recent months.

As Turkey’s second largest carrier after Turkish Airlines (THY) by capacity (seats), (PGS) currently only has nine additional 737-800s on order but is looking to accelerate expansion through a massive order of about 100 new narrow body airplanes. (PGS)’s fleet is relatively modern with 33 737-800 airplanes and only two 737-400s. As a result, any new order would primarily be for expansion purposes rather than replacement.

An announcement could come in the near future, once the airline has completed its evaluation of the 737 MAX, A320neo and the Bombardier CSeries. As these new generation airplane types are not yet available, (PGS) could also order current generation narrow body airplanes to meet its interim needs.

(PGS) also has a sister carrier, Izair (IZM), which was formed as a joint venture with airberlin (BER) in 2011. Izair is now branded as "Airberlin Turkey" (IZM) and operates services between Germany and Turkey.

(PGS) is the leading low-cost carrier (LCC) in Turkey’s domestic and international markets. Domestically, it faces low-cost competition from Atlasjet (ABE) and Turkish Airlines (LCC) unit, AnadoluJet (ANJ).

(ABE) is also privately-owned, however, it is based at Istanbul Ataturk Airport. Ataturk is Istanbul’s main airport and is the hub for Turkish Airlines (THY), while Sabiha Gökçen is located further from the city and is primarily used by (LCC)s. (ABE) offers about 43,000 seats per week domestically compared to about 171,000 seats for Pegasus (PGS).

AnadoluJet (ANJ) is based in the Turkish capital, Ankara, but also has a smaller hub at Sabiha Gökçen airport, where it operates about 10 domestic routes. (ANJ) accounts for most of (THY) domestic capacity at Sabiha Gökçen airport. (THY) now offers about 30,000 domestic seats per week at Sabiha Gökçen airport compared to about 146,000 seats for Pegasus (PGS) (as AnadoluJet (ANJ) uses the same (TK) code as Turkish Airlines (THY), its capacity is grouped together with (THY) mainline capacity).

At Ankara, (THY) and (ANJ) have a much larger presence than Pegasus (PGS). Currently (THY) has about 150,000 domestic seats per week at Ankara, most of which are operated by the (ANJ) unit, while (PGS) only has about 33,000 seats.

Internationally, the low-cost competition is even more intense in Turkey. But (PGS) is still clearly the leading (LCC).

(PGS) has advantages over other European (LCC)s in that it has a huge domestic market and is well positioned, given Turkey’s strategic geographic locations, for operating internationally to Western and Eastern Europe as well as to the Middle East. The domestic Turkish market while large, only has (PGS), (ABE) and (ANJ) offering low cost domestic services. Full service domestic competition is provided by (THY) and Onur Air (ONU) but both carriers operate from Istanbul Ataturk airport rather than from Sabiha Gökçen airport.

The country’s domestic low-cost penetration rate is roughly 50%. (PGS) has a 27% share of the domestic market and (ABE) has a 7% share. The exact market share figure for (ANJ) is unknown as its services fall under full-service parent (THY). But (THY) overall has a 57% share of Turkey’s domestic market, including an estimated share of between 15% and 20% for (ANJ).

(PGS)’ network has a largely domestic focus with 65.3%, or 171,136 seats each week, of its capacity currently attributed to domestic services. The Turkish economy has been growing rapidly, estimated at +9% in 2010. This in turn boosts the demand for domestic as well as international travel in Turkey.

(PGS) provides almost three quarters of the overall system capacity at its base at Istanbul Sabiha Gökçen Airport, followed by (THY) on 10.3% (includes flights operated by the (ANJ) unit).

SunExpress (SNS), which is a joint venture carrier between Turkish Airlines (THY) and Lufthansa (DLH) focusing on leisure routes, accounts for 7.7% of total capacity at Sabiha Gökçen airport, giving the Turkish Airlines (THY) Group a total share of 18%. While (THY) has a relatively small share of capacity at Sabiha Gökçen airport compared to its rival (PGS), it has an overall share of 71.8% at Istanbul Ataturk airport.

(PGS)’ largest domestic routes are generally from Sabiha Gökçen airport with the exception of two routes from Izmir. One of these operates to Istanbul Ataturk airport, (THY)’s stronghold. On this route (PGS) faces competition from (THY), (ONU) and Atlasjet (ABE). This is (PGS)’ only service into Istanbul Ataturk airport.

(PGS)’ international network is dominated by its European operations, particularly to Western Europe. Its three main international routes are really just regional operations to Ercan in Northern Cyprus. Following Ercan, are common secondary airport destinations across Western Europe such as London Stansted.

At Sabiha Gökçen airport, (PGS) accounts for 63% of total international capacity and competes with (ANJ) on only one route ( London Stansted). (PGS) faces more international competition at Sabiha Gökçen airport from Sun Express (SNS). (SNS) is based at Antalya airport, but currently operates about 10 international routes from Sabiha Gökçen airport, almost entirely to destinations in Germany.

Turkey’s other (LCC), AtlasJet (ABE), is mainly a domestic carrier with only one-third of its capacity allocated to international routes. (ABE)’s international services operate from Ataturk and as a result it only competes indirectly with (PGS).

(PGS)’ network focus is almost purely on expanding its Eastern European network. Domestically, it has made little changes to its network, with the launch of Istanbul Sabiha Gökçen airport - Sivas service as the only new domestic service recently launched. For its summer 2012 schedule, the only Western European changes consisted of frequency increases on its existing services to London Stansted from Istanbul Sabiha Gökçen and Izmir.

In the latter half of 2011, and in early 2012, (PGS) has been focusing on developing its Eastern European network. New routes connecting Turkey to Bucharest (Romania), Donetsk (Ukraine), Erbil (Kurdistan, Iraq), Pristina (Kosovo), Skopje (Macedonia) and Almaty (Kazakhstan) were added onto its network.

Overall, when looking at the Turkey’s statistics, the total capacity offered between Turkey and Eastern Europe (218,987 seats per week) is only half that of capacity offered to Western Europe (444,425). As with (PGS)’ own network, it currently still offers more services to Western Europe than Eastern Europe, but this gap is set to reduce.

(THY) shares (PGS)’ strategy on Eastern Europe and is expanding in the region not only with its own flights but also code share agreements with carriers in the region, most recently with Russia’s UTair (TYU). (THY) is also planning to increase its influence in the region and is currently in talks with the Polish Government to potentially acquire national carrier (LOT) Polish Airlines. (THY) already has a 49% stake in Bosnia and Herzegovina’s B & H Airlines (BOS), while having managerial control of the airline.

2012 may see further developments not just regarding (PGS)’ rumored large airplane order, but also in relation to its initial public offering (IPO). In July 2011, (PGS) (CFO), Serhan Ulga stated (PGS) was planning an (IPO) for early 2012 after being postponed due to unrest in the Middle East and high oil prices in early 2011. It is quite possible this will occur prior to any large airplane order being placed, to solidify its financial position.

With its strong base, particularly due to its strong domestic Turkish operations, (PGS) is well placed to expand its international network from Turkey. Its Eastern European network is likely to expand further, but will be restricted somewhat until it expands its fleet.

(PGS)’ rate of expansion will depend on the continuing growth of the Turkish economy. National carrier, Turkish Airlines (THY) is confident of continuing growth in its home market but has a stronger overall position, as it by far the largest carrier in Turkey. (THY)'s large and fast growing hub also allows the flag carrier to pursue rapid growth in transit passengers.

April 2012: Air Berlin (BER) as well as Condor (CDF), germanwings (RFG), Pegasus Airlines (PGS), Sun Express (SNS), Sun Express Deutschland (SXD) and TUIfly (HAP)/(HLX) will all have to adjust their schedules at Cologne/Bonn Konrad Adenauer airport (CGN) after a decision by the state government of North Rhine-Westphalia to impose a night flight ban on passenger flights between midnight and 5 am. Cargo flights will not be affected by the ban and an effective date has not yet been set. All of the carriers mentioned have made extensive use of the 24 hour operations at the airport, especially for leisure flights targeting less time sensitive travellers.

June 2012: Pegasus (PSS) has launched another new route from its Istanbul Sabiha Gökçen (SAW) base with Tel Aviv (TLV) in Israel being served with six weekly flights starting on 18 June, using (PGS)’s fleet of 737-800s. Tel Aviv will become (PGS)’s 52nd destination. Indirect competition is provided by Turkish Airlines (THY), which operates up to four daily flights from Istanbul Atatürk Airport.

(PGS) is privately held. But it’s less shy when it comes to communications, and it’s apparently more successful too. Its founder Ali Sabanci, who hails from a family that owns a giant Turkish conglomerate, tells the "Financial Times" that (PGS) is profitable at the earnings before interest, tax, depreciation and amortization (EBITDA) level and grew revenues +27% last year to $900 million. (PGS) was born just six years ago, after Turkey deregulated its domestic market. (PGS) now controls 24% of that market, compared to 50% for Turkish Airlines (THY). (PGS) also owns 17% of Air Berlin (BER), making it the second largest shareholder behind Etihad (EHD). (GS) now has 42 planes serving 52 cities but would like to expand into Russia and central Asia, if only those regions would open their markets. (PGS) has in the past complained that (THY) tacitly supports keeping some of those markets closed, to protect them from new competition.

August 2012: Pegasus Airlines (PGS) launched its third route to Italy on 2 August when (PGS) connected its Istanbul Sabiha Gökçen (SAW) base with Bologna (BLQ), complementing (PGS)’s routes to Rome Fiumicino and Milan Bergamo. Flights operate three times weekly (Tuesdays, Thursdays, and Saturdays) with 737-800s. Indirect competition at Istanbul Atatürk comes from Turkish Airlines (THY)’s twice-daily Bologna operations.

(PGS) will launch 4X-weekly, Istanbul Sabiha Gokcen - Batumi - Hopa service on October 8. (PGS) will launch 2X-weekly, Istanbul (IST) - Batumi 737-800 service on October 8 and 3X-weekly, (IST) - Lviv 737-800 service on October 17.

September 2012: Pegasus Airlines (PGS) is launching daily flights to Dubai from Istanbul Sabiha Gokcen airport on 18 October. It will compete with Turkish Airlines (THY), Emirates (EAD) and FlyDubai (FDB) on the Istanbul - Dubai route.

(PGS) confirmed that its new service to Batumi, Georgia will be launched on 8 October.

October 2012: Pegasus Airlines (PGS) has started talks about a possible initial public offering (IPO) in the first quarter of 2013, "Reuters" reported. It is expected (PGS) may float less than <25% of the company. It postponed an (IPO) last year due to weak home market conditions.

Local media outlets are reporting (PGS) is in negotiations for an order for 100 single-aisle airplanes, possibly either Airbus (EDS) A320neos or Boeing (TBC) 737s, according to Turkish aviation magazine "," which said the planned (IPO) is not related to the expected airplane order.

(PGS) Chairman, Ali Sabanci said last month (PGS) had decided on its next 40+ major airplane purchase but declined to name a specific airplane. He also said he preferred to make the announcement in his native land shortly. (PGS) expects to start receiving the new airplanes in around three years.

(PGS), founded in 1990, operates a fleet of 40 737-800s and two 737-400s.

(PGS) is expanding rapidly in Central Asia and Russia. Sabanci said its home base in Istanbul was a major incentive for travelers from those areas to travel with (PGS).

Pegasus Airlines (PGS) launched its second route to Georgia on 8 October. From its base at Istanbul Sabiha Gökçen (SAW), (PGS) now flies four times a week to Batumi (BUS) on Georgia’s Black Sea coast, complementing its daily flights to the country capital Tbilisi. The new route indirectly competes with Turkish Airlines (THY)’s daily flights to Batumi from Istanbul Atatürk.

On 17 October, (PGS) launched thrice-weekly flights on the 1,100 km route from Istanbul Sabiha Gökçen (SAW) to Lviv (LWO) in western Ukraine. The Ukrainian airport has seen a number of route launches this year, including frm Dortmund and Venice (Wizz Air (WZZ)) and from Kraków and WrocLaw (eurolot (LOT)), as the airport reopened for business following a comprehensive upgrade of its facilities.

On 18 October, (PGS) added another new route from its Istanbul base and now serves Dubai (DXB) with four weekly flights. Scheduling of the new service makes connections from Europe possible. This is (PGS)’s first route to the Arabian Peninsula.

December 2012: Pegasus Airlines (PGS) inaugurated operations in the southern Turkish airport of Alanya Gazipa (GZP), as it commenced four-weekly services to its Istanbul Sabiha Gökçen (SAW) base on 17 December. (PGS), which now serves 22 domestic destinations from the Istanbul airport, will operate the 600 km route using its fleet of 737-800s.

As Turkey's main low cost carrier (LCC), Pegasus Airlines (PGS) is making Belgrade, Serbia as its first new destination in 2013 starting in February. Remember the parent company of (PGS) owns 12% of Air Berlin (BER), although it's largely a passive shareholding, that is overshadowed by Etihad (EHD)'s 29% stake.

(PGS) has told the "Khaleej Times" that its new Dubai flights are doing well and that it wants to add more Gulf routes, including Bahrain, Doha, and Kuwait, if it can obtain flight rights. (PGS) also wants to expand in the former Soviet region, and is expected to soon announce a new airplane order.

Swiss-AS was selected by Pegasus Airlines (PGS) to provide and implement its maintenance and engineering software (AMOS). When fully implemented, all maintenance processes for (PGS) will be managed electronically.

Pegasus Airlines (PGS) has agreed to order up to 100 Airbus (EDS) A320neos and A321neos, comprising 58 A320neos and 17 A321neos, of which 75 are firm orders. According to Airbus (EDS), this is the largest single commercial airplane order placed by an airline in Turkey. The airplanes are part of (PGS)’s major expansion plans to 2023. Deliveries are scheduled from 2015 to 2022.

(PGS) Chairman, Ali Sabançi said the deal is worth $12 billion at list prices.

(PGS) currently has an all-Boeing (TBC) fleet of 40 737-800s (plus two older 737-400s), with an average age of just 3.86 years.

Pegasus (PGS) has expanded rapidly since starting scheduled services in November 2005; this year to date it has carried 13.5 million passengers and operates to 62 destinations throughout Europe, Central Asia and the Middle East.

January 2013: SEE ATTACHED - - "PGS-2013-01 - UPDATE-A/B/C."

Aerostar is due to carry out three "C" airplane maintenance checks on one 737-400 and two 737-800s for Pegasus (PGS) in the first quarter of 2013.

February 2013: Pegasus Airlines (PGS) inaugurated services on the 850 km route from its Istanbul Sabiha Gökçen (SAW) hub, to Belgrade (BEG) in Serbia on 1 February. (PGS), which already flies five weekly to Pristina in Kosovo and four-weekly to Skopje in Macedonia, continues its expansion in south-eastern Europe with four-weekly frequencies to the Serbian capital. All flights are operated using (PGS)’s 737-800.

(KLM) UK (AUK) Engineering was selected by Pegasus Airlines (PGS) for services including painting and a C-Check on one 737NG which will be returned to the lessor.

March 2013: Turkey’s airports handled 130 million passengers in 2012, up +10.7% on 2011, and up a staggering +85% in just five years. As a result, Turkey is now Europe’s sixth biggest aviation market in terms of airport passenger numbers, after Europe’s "big 5" of France, Germany, Italy, Spain and the UK. However, at the current rate of growth, Turkey is likely to overtake both France and Italy by the end of 2015. While overall growth was just under +11%, the country’s main airport, Istanbul Atatürk, reported growth of just over >20% last year, handling 45 million passengers, helped by an apparently never-ending raft of new routes from national carrier Turkish Airlines (THY). This meant Istanbul Atatürk was Europe’s sixth busiest airport in 2012 and is on track to move past Madrid into fifth place in 2013 – little wonder that the Turkish government has decided to avoid a London Heathrow style crunch and build a new $10 billion, six-runway facility opening in 2017.

(PGS) began daily, Istanbul - Barcelona service.

Istanbul’s second airport at Sabiha Gökçen, also reported double-digit growth, as Pegasus Airlines (PGS), the country’s leading low cost carrier (LCC) continued to expand its route network.


Turkish Airlines (THY) is also launching eight new routes from Istanbul Sabiha Gökçen during the summer. Three of these (Amsterdam, Tbilisi, Vienna) will be competing directly with Pegasus (PGS), while three others (London Gatwick, Milan Malpensa, Paris (CDG)) serve airports in the same city that Pegasus (PGS) also serves, leaving only the new services to Baku and Kuwait as non-contested markets.

However, Pegasus (PGS) is also starting a plethora of its own new routes, and since the beginning of October has added Batumi (Georgia), Belgrade (Serbia), Dubai (UAE) and Lviv (Ukraine) to its network with Sarajevo (Bosnia & Herzegovina) flights started on 28 February, followed by Bishkek (Kyrgyzstan) in late March.

Pegasus Airlines (PGS) commenced operation on the 3,700 km route from its Istanbul Sabiha Gökçen airport (SAW) to the Kyrgyz capital of Bishkek (FRU) on 21 March. Daily flights are offered on the route, on which (PGS) faces competition from the daily services offered by the Kyrgyz airline, Air Manas. Almaty in Kazakhstan is the only other destination served by Pegasus Airlines (PGS) in Central Asia, and twice-daily flights are offered on this route.

Honeywell (SGC)’s IntuVue 3-D Weather Radar Hazard Display Update V1.0 has been selected by (PGS). (PGS)’ selection of the upgrade brings new features, including hail and lightning prediction and the industry’s longest turbulence detection range, to Europe for the first time following the system’s (EASA) certification.

Honeywell (SGC) predicts (PGS) will also be able to reduce unscheduled maintenance costs and airplane grounding through IntuVue’s new features that simplify decision-making about re-routing and tactical manoeuvring around inclement weather. (SGC) will install the software upgrade across (PGS)’s 42-strong, IntuVue-equipped 737 fleet over the next eight months.

April 2013: On 9 April, Pegasus Airlines (PGS) inaugurated thrice-weekly flights to Nevehir (NAV), located in the Central Anatolia region of Turkey, from its Istanbul Sabiha Gökçen (SAW) hub. The 505 km route is shorter than the second of the two domestic routes launched this week, which started flights on the 859 km route between Izmir (ADB) and Sivas (VAS), also launched on the same day. Turkish Airlines (THY) mounts double-daily indirect competition from its Istanbul Atatürk hub to Nevehir.

Fast-growing Turkish low-cost carrier (LCC) Pegasus Airlines (pgs) plans to launch its delayed initial public offering (IPO) of around a third of the company in mid-April, according to "Reuters."

(PGS) aims to use funds raised to help its expansion, increasing its capital to 102 million lira/$57 million from 75 million lira.

Unidentified sources were quoted as saying 65% to 80% of the offer would be reserved for foreign investors.

(PGS) postponed a previous planned (IPO) in 2011 due to poor market conditions.

May 2013: Pegasus Airlines (PGS) will launch services from Istanbul to the capitals of Qatar and Greece. (PGS) will operate thrice-weekly flights from Istanbul's Sabiha Gökçen airport (SAW) to Doha International from 16 June, and daily flights to Athens International from 29 June. (PGS) will compete with Turkish Airlines (THY) on both routes.

(KLM) Royal Dutch Airlines and Pegasus Airlines (PGS) have signed a code share effective for travel June 3. Passengers will be able to transfer between (PGS) and (KLM) flights through Amsterdam Schiphol Airport, Istanbul Sobiha Gökçen Airport and Izmir Adnan Menderes Airport. An interline agreement also allows passengers to travel on a (KLM) ticket between any airport served by (PGS) in Turkey and any airport served by (KLM).

"Pegasus Asia" (PGZ) is the name of a new joint venture (JV) between Pegasus Airlines (PGS) and Air Manas (MBB) of Kyrgyzstan. Initially, the (JV) will use a single wet-leased 737-82R (38175, TC-AVP - - SEE PHOTO - - "PGS-2013-05 - ASIA DIVISION") to operate daily services from Istanbul to Bishkek.

June 2013: Pegasus Airlines (PGS) commenced flying on the 600 km route from its Istanbul Sabiha Gökçen (SAW) base to Athens (ATH) on June 29. Daily flights are offered on the newly launched route and operated using (PGS)’s fleet of 737-800s. Indirect competition between Istanbul Atatürk and Athens is provided by Turkish Airlines (THY) (25 weekly flights), Olympic Air (OLY) (13) and Aegean Airlines (CRM) (seven).

(PGS) has signed a base maintenance contract for three "C" checks on 737NG airplanes with the Sofia, Bulgaria-based, Lufthansa Technik (DLH) (LTK). (PGS) General Manager, Sertac Haybat said he is happy with base maintenance done by Lufthansa Technik and wishes to continue with it. Lufthansa Technik VP Marketing, Wolfgang Weynell described (PGS) as one of Lufthansa Techik (DLH) (LTK)’s most important customers in the region.

737-82R (40881, TC-CPJ "Boren K"), delivery.

July 2013: Pegasus Airlines (PGS) begins 3X-weekly, Istanbul (SAW) - Doha service. (PGS) will offer 5X-weekly, Istanbul (SAW) - Tirana from September 2.

Pegasus Airlines (PGS) has selected (CFM) International’s (LEAP-1A) engine to power its new fleet of up to 100 Airbus A320neos and A321neos. The airplane order, which was announced in December 2012, comprises 58 A320neos and 17 A321neos, of which 75 are firm orders.

Deliveries are scheduled to begin in 2016. The airplanes are part of (PGS)’s major expansion plans to 2023.

737-86J (37740, TC-IZE "Elif"), ex-(D-ABKB), (SMBC) Aviation leased.

August 2013: Pegasus Airlines (PGS) ended the first half with a net profit of +TRY44.1 million/+$22.6 million, reversed from a -TRY70.1 million loss for the same period last year.

(GE) Capital Aviation Services (GECAS) (GEF) has delivered two new 737-800s to Pegasus Airlines (PGS) following a purchase-and-leaseback transaction.

September 2013: The Turkish Competition Authority has again placed Turkish Airlines (THY) under investigation after an Ankara Administrative Court moved to reassess a 2010 complaint lodged by Pegasus Airlines (PGS) claiming (THY) had abused its dominant position in the market “by engaging in exclusionary practices with its outbound Istanbul Atatürk domestic and international flights.” The claim was dismissed in late 2011.

(THY) stated that the Turkish Competition Authority concluded at the end of the 2010 investigation that (THY) did not violate the framework of the law.

(PGS) has filed an action to the 11th Administrative Court in Ankara and won an appeal ordering it to investigate on the grounds “that the dominant position of Turkish Airlines (THY) and the fact that Istanbul Ataturk and Sabiha Gökçen airports can be used as substitutes, must be investigated and the price policies of the complainant must be analyzed.”

The Turkish Competition Authority has renewed the investigation to act in accordance with the decision of the Administrative Court, according to a (THY) statement. “Furthermore, the cassation of the decision of the Administrative Court by the Turkish Competition Authority is possible.”

Pegasus Airlines (PGS) commenced flights from Istanbul Sabiha Gökçen (SAW) to Tirana (TIA) in Albania on September 2nd. The 805 km sector will be operated five-times weekly using 737-800s, and has no direct competition, though Turkish Airlines (THY) operates twice-daily flights from Istanbul Atatürk.

(PGS) will link Tirana to 25 destinations beyond Turkey, including Almaty, Amsterdam, Baku, Beirut, Berlin, Bishkek, Bucharest, Cologne, Copenhagen, Doha, Donetsk, Dubai, Kharkiv, Krasnodar, London, Marseilles, North Cyprus (Ercan), Nuremberg, Omsk, Skopje, St Etienne/Lyon, Stockholm, Tbilisi, Tehran, and Tel Aviv.

(PGS) is based at Sabiha Gokcen Airport and flies to Europe, the Middle East, Russia and the Caucasus, serving 72 destinations in 30 countries.

Tirana International Airport recently landed summer flights to Amsterdam from ArkeFly (HOL), the Dutch leisure airline of the TUI Group (TUG).

October 2013: Transaero Airline (TRX) and Pegasus Airlines (PGS), which have been designated by Russian authorities for flights between Istanbul and Moscow, are launching flights in October. They join Aeroflot (ARO) and Turkish Airlines (THY), which offer 28x-weekly flights between the cities.

(TRX), which is starting Moscow - Istanbul daily flights on October 27, will fly between Istanbul Ataturk and Moscow Vnukovo. (PGS), which began flights October 8, will fly from Istanbul Sabiha Gökçen to Moscow Domodedovo.

Pegasus (PGS) has offered services from Istanbul to Omsk and Krasnodar, and from Trabzon to Sochi, but (PGS) wanted to acquire the designation for the popular Istanbul - Moscow route, according to airline (CEO), Ali Sabanchi.

(PGS) was approved for 3x-weekly flights on the Istanbul - Moscow route. According to Senior VP, Ms Guliz Ozturk, since (PGS) has been operating the service, competitors have decreased fares an average of -13.3%, from €300/$413.83 to €260.

Last year, Russia agreed to amend its bilateral agreements to add more designated airlines with several countries such as France and Italy.

(PGS) has launched two new routes in one week with the addition of Istanbul Sabiha Gökçen (SAW) to Moscow Domodedovo (DME), and Trabzon (TZX) to Adler/Sochi (AER). The first route, started on October 8th, is a 1,731 km sector and is operated thrice-weekly by 737-800s without competition (Tuesdays, Thursdays and Sundays); the second, begun on October 10th, is a twice-weekly 737-800 service (Tuesdays and Fridays) on the short 270 km sector, again without competition.

(PGS) added three new points in Turkey from London Stansted: - Edremit (3x-weekly) from December 15; - Erzurum (4x-weekly) from January 20, 2014; - Mardin (3x-weekly) from January 22. (PGS) also begins Istanbul Sabiha Gökçen - Brussels Charleroi service from March 30, 2014.

December 2013: Pegasus Airlines (PGS) launched domestic destination #28 and #72 overall from its Istanbul Sabiha Gökçen (SAW) hub, flying thrice-weekly to Edremit (EDO), situated on the Turkish western coast in Balikesir Province. With no competition on the 243 km sector, the route, which commenced on December 16th, will be flown by the airline’s 189Y-seat 737-800s.

January 2014: Pegasus Airlines (PGS) has commenced its 32nd domestic destination from its hub at Istanbul Sabiha Gökçen (SAW) to Erzurum (ERZ) in eastern Turkey. Flown by (PGS)’s 189Y-seat 737-800s, the 1,012 km sector will be operated eight times weekly. Turkish Airlines (THY) will provide competition on the airport pair, flying 12 times weekly. Indirect competition is also present from Istanbul Atatürk, with Onur Air (ONU) flying daily services, as well as Turkish Airlines (THY)’s 17 times weekly operations.

February 2014: Pegasus Airlines (PGS) is to add daily services from Istanbul (SAW) to Madrid (March 24) and Frankfurt (March 22).

March 2014: Pegasus Airlines (PGS) is further strengthening its Istanbul Sabiha Gökçen (SAW) hub with the addition of daily operations to Madrid (MAD) and Frankfurt (FRA). Madrid will become (PGS)’s second destination in Spain, complementing its existing daily services to Barcelona, whereas Frankfurt becomes German airport #7, joining Cologne Bonn, Düsseldorf, Munich, Nuremburg, Stuttgart and Berlin Schönefeld. The Frankfurt service, which began on March 22nd, will face direct competition from Turkish Airlines (THY), which also flies daily on the airport pair. In addition, Lufthansa (DLH) flies thrice-daily between Istanbul Atatürk and Frankfurt, with (THY) offering 29 weekly flights on the same airport pair. To Madrid, which began on March 24th, there is no direct competition, but from Atatürk, (THY) offers a thrice-daily operation to the Spanish capital. Both new services will be operated by (PGS)’ 189Y-seat 737-800s.

April 2014: Pegasus Airlines (PGS) has increased its Istanbul (SAW) - Tel Aviv service to 3x-daily.

May 2014: Turkey’s fast-expanding low-cost carrier (LCC), Pegasus Airlines (PGS) recorded a first-quarter net loss of -TL104.5 million/-$50.2 million, widened sharply from a deficit of -TL6.3 million in the year-ago quarter.

First-quarter revenue jumped +36% to TL512 million from TL377 million year-over-year, with ancillary sales per passenger rising significantly to TL27.3 from TL19.5 in the same period last year.

(PGS) carried 4.08 million passengers in the quarter, up +25.4% year-over-year. (CEO), Sertac Haybat said the first quarter of the year is always a difficult one for (LCC)s. “Due to seasonality and the recent fluctuation in the exchange rates, I can say that this really has been a tough period for the sector. As a result, the first quarter was not a profitable period for us,” he said.

Haybat is confident (PGS) “will continue to grow and expand as the rest of the year progresses, in particular with the increase in demand during the summer period and the addition of new routes.”

(PGS) plans to make a major switch in its fleet from next year, from Boeing 737s to Airbus A320-family airplanes.

Pegasus Airlines (PGS) will begin 3x-weekly, Istanbul (SAW) - Bahrain service on June 12.


Pegasus Airlines (PGS) will begin 4x-weekly, Istanbul Sabiha Gökçen - Budapest Boeing 737-800 service on July 16. (PGS) continues to build up its hub operation from Istanbul Sabiha Gökçen (SAW), with the start of thrice-weekly services to Bahrain (BAH). The route becomes (PGS)’s seventh service to the Middle East, joining the likes of Beirut, Doha, Dubai, Tehran, Kuwait City, and Tel Aviv. Commenced on June 12TH, the 189Y-seat, 737-800-operated flights face no direct competition. However, Gulf Air (GUL) (seven times weekly) and Turkish Airlines (THY) (daily) operate on the city pair, but from Istanbul Atatürk.

Pegasus Airlines (PGS) added two more destinations to its burgeoning Istanbul Sabiha Gökçen (SAW) hub, with the start-up of operations to Prague (PRG) on June 19th and Geneva (GVA) on June 21st. The former will be flown four times weekly, while the latter, (PGS)’s third Swiss destination (after Basel and Zurich), will be operated thrice-weekly. Interestingly, the growing presence of (PGS)’s new A320s is being felt on these routes, as both routes are flown with a mixture of equipment, including its more regular 737-800 operations. Both routes face no direct competition. However, Turkish Airlines (THY) offers both points from its Istanbul Atatürk hub, with Prague served double-daily and Geneva thrice-daily.

July 2014: Pegasus Airlines (PGS) started operations to its eighth year-round German destination (current flights to Saarbruecken and Hannover are seasonal only) on July 1st, with Hamburg (HAM) becoming connected to its Istanbul Sabiha Gökçen (SAW) hub. The four times weekly service, operated by a variety of equipment, will be flown in direct competition with germanwings (RFG) (twice-weekly) and Turkish Airlines (THY) (weekly), but also in indirect competition with Turkish Airlines (THY)’s four times daily operation from Hamburg to Istanbul Atatürk. (PGS)’ Hamburg flights will join existing year-round German services to Cologne Bonn, Düsseldorf, Frankfurt, Munich, Nuremburg, Stuttgart, and Berlin Schönefeld. Pegasus (PGS) (CCO), Ms Guliz Ozturk said: “Pegasus (PGS) continues to expand its network in Germany, to which it first flew in 2006. We value Germany greatly as a destination, given the huge potential for passengers between the two countries, and as it’s the country we fly to the most. We now connect Hamburg to 23 destinations within Turkey and 21 destinations beyond Turkey.”

Pegasus Airlines (PGS) began operations to its 21st European capital city, when it launched flights from Istanbul Sabiha Gökçen (SAW) to Budapest (BUD) - - SEE PHOTO - - "PGS-2014-07-TO BUDAPEST." Flying four times weekly, the fifth largest European (LCC) (by passenger numbers) will use its 189Y-seat 737-800s on the route, with services started on July 16th. Wizz Air (WZZ) also operates the airport pair with daily services, while Turkish Airlines (THY) flies from Istanbul Atatürk to Budapest thrice-daily. Joining the Budapest - Turkey market gives (PGS) an immediate 14% share of all scheduled seats, as well as offering 12% of Budapest’s weekly flights to Turkey. The launch further consolidates Turkey’s position as the seventh largest country market served from Budapest, with 32 weekly scheduled operations offering a total of 5,253 weekly seats.

August 2014: Rapidly growing Turkish low-cost carrier (LCC) Pegasus Airlines (PGS) continued to slip into the red in the first half of 2014 compared to the year-ago period. It made a net loss of -TL17.9 million/-$8.2 million, reversed from a profit of +TL44.1 million last time.

Sales were up +33% at TL1.3 billion, compared to TL989 million year-over-year. Its share of the Turkish domestic market rose from 26.7% to 28%, and its share of the international market grew from 9.1% to 9.8% during the period.

Passenger numbers rose +22% to 9.2 million, up from 7.6 million. Load factor increased fractionally, to 79.4% LF, up from 79.3% LF last time.

The first half of 2014 saw a -2% fall in the cost per available seat kilometer (CASK) to €4.06/$5.42, down from €4.13 for the same period last year. Capacity (ASK)s increased +22.3%.

(PGS) General Manager, Sertac Haybat said (PGS) had made effective use of such competitive advantages as its geographical location, flight network and low-cost structure: “We will continue to be one of Europe’s fastest-growing, (LCC)s in the coming period with our high rate of average daily airplane utilization and our recent airplane order to the value of $12.2 billion.

“In an expanding market, we have increased our capacity, while at the same time continuing to increase our market share, as we have done in recent years. We have also succeeded in reducing the cost per (ASK) by using our airplanes efficiently.”

September 2014: Pegasus Airlines (PGS) will start weekly, London Stansted - Hurghada on October 23, via Istanbul Sabiha Gökçen. It will also start a weekly, Istanbul (SAW) - Sharm El Sheikh service in October.

November 2014: Pegasus Airlines (PGS) has more than doubled its third-quarter net profit to +TL252 million/+$111 million compared to +TL115 million in the year-ago period.

Revenue for the period reached TL1.1 billion, compared to TL835 million a year ago. Profit per share was TL2.45, more than double the equivalent figure of TL1.12 last time.

(PGS) said that in the first nine months of 2014, sales rose +33% to TL2.4 billion, compared to the same period in 2013, while (ASK)s rose +22% and passenger numbers rose +19.4% to 15 million. Load factor for the first nine months was 80.6% lf, the same as for the same period in 2013. Airplane daily utilization also remained static at 12.8 hours.

Net profit figures for the first nine months rose +47% from +TL159 million to +TL234 million.

Pegasus (PGS) continues to expand, having added 11 new destinations so far this year, including its first services to the African continent, Shark el Sheikh, and Hurghada on Egypt’s Red Sea coast.

After four successive quarters of year on year declines in its underlying operating result, Pegasus Airlines (PGS) reported an increase in (3Q) 2014. Its operating margin was at the same level as (3Q) 2013, after falling in (1H), and second in Europe only to Ryanair (RYR).

February 2015: News Item A-1: Pegasus Airlines (PGS) begins 3x-weekly, Istanbul Sabiha Gökçen International (SAW) - Lyon and 5x-weekly, (SAW) - Nice in March. Pegasus (PGS) also begins 4x-weekly, (SAW) - Milan (MXP) service in March.

News Item A-2: Pegasus Asia (PGS) has started its third service from Bishkek (FRU), adding Delhi (DEL) to existing operations to Moscow Domodedovo and Osh. Commenced on February 20th, the 1,629 km city pair will be flown twice-weekly (Mondays and Fridays) and will be operated by (PGS)’s 189Y-seat 737-800s. No other airline currently flies on this route.

March 2015: News Item A-1: Pegasus Airlines (PGS)’ recorded a net profit of +TL143.3 million/+$55.4 million in 2014, a +62% rise on 2013’s figure. The improvement restored (PGS)’ low cost carrier (LCC) earnings figure to that of 2012 after a dip in 2013 caused by currency fluctuations.

Revenue for 2014 rose +29% to TL3.1 billion, while passenger figures rose +17.3% in 2014 to 19.7 million.

Last year, (PGS) continued a rapid expansion with 14 new routes added to its network throughout Europe and the Middle East.

Average daily airplane utilization was 12.6 block hours, while load factor was 80% LF, fractionally down on 2013’s figure of 80.2% LF.

“We continued to increase our market share this year through healthy growth in 2014,” Pegasus (PGS) General Manager, Sertaç Haybat said, adding that (PGS) intends to continue a policy of growth in 2015, by adding routes and increasing frequencies on existing sectors.

Carriage of passengers in Turkey’s airline sector has more than doubled in the past seven years, with 165.9 million passengers carried in 2104 compared to 70.2 million in 2007, largely as a result of liberalization of domestic routes.

News Item A-2: Avolon Leasing (AZV) delivered a Boeing 737-800 to Pegasus Airlines (PGS), (AZV)’s 4th airplane on lease to (PGS).

April 2015: Pegasus Airlines (PGS) has purchased 40% minority "B" shares of Hitit Computer Services. With this share purchase agreement, parties also have the option to buy and sell another additional +10% of Hitit "B" shares after April 4, 2016.

May 2015: Pegasus Airlines (PGS) carried 4.52 million passengers, up +10.8% in the first quarter compared to the year-ago period, according to the Turkish low-cost carrier (LCC).

Seat capacity rose to 5.81 million, up +12.8% on the same period last year.

Fast-expanding (PGS), which is increasingly moving into regions such as the Middle East, said it took a 12.3% market share of international services from Turkey, together with 28% of the nation’s domestic traffic. Combined, this equated to a 21.9% share of Turkish air traffic, up from 21.3% for the year-ago period. Overall load factor was 77.8% LF.

(PGS)’ network expanded to 89 destinations in the first quarter compared to 80 in the year-ago quarter. (By the end of April, the number of points on the route map had risen to 91, made up of 31 domestic and 60 international destinations.)

“We ended 2014 with growth in double-digit figures after a year of continuous growth and 2015 has been equally as dynamic,” (PGS)’ (CEO) & General Manager, Sertac Haybat said.

“According to Turkey’s General Directorate of State Airports Authority, there has been an increase in guest numbers by +7.7% during the first quarter of 2015 for the country’s aviation sector in general, a period when we have recorded an increase of +10.8%.

“In the first quarter of 2015, as in previous years, we have continued growing faster than the rest of the Turkish aviation sector, achieving +40% faster growth this quarter,” he said.

May 2015: On May 22, Pegasus Airlines (PGS) launched services between Istanbul Sabiha Gökçen (SAW) and Nice (NCE). The 1,836 km sector will operate 4x weekly, using a mixture of its 180-seat A320s and 189-seat 737-800s. (PGS) will face no direct competition on the route, but does face indirect competition from Turkish Airlines (THY), who operate a twice-daily service from Istanbul Atatürk Airport to Nice.

A320-216 (6597, TC-DCG), ex-(F-WWDF), Avolon (AZV) leased.

June 2015: Pegasus Airlines (PGS), the 2nd largest Turkish carrier, started its new scheduled route between Istanbul Sabiha Gökçen (SAW) and Münster/Osnabrück (FMO) on June 24. The flights will be operated from now until mid-September on a 4x-times weekly basis. While there is no direct competition, the German airport is already served by Turkish Airlines (THY), who operate to Istanbul Atatürk 5x-times weekly, and on a year-round basis.

July 2015: Avolon (AZV) delivered an Airbus A320-200 aircraft to Pegasus Airlines (PGS), its 8th aircraft on lease to (PGS).

September 2015: Pegasus Airlines (PGS) began two new services to Iraq, connecting its hub at Istanbul Sabiha Gökçen (SAW) to Erbil (EBL) and Baghdad (BGW). Both routes will be operated by (PGS)’ 189Y-seat 737-800 fleet. While the former, which commenced on September 10 and will be flown 4x-weekly, will face direct competition from Turkish Airlines (THY) (11x-weekly), the latter, which began on September 8 with 3x-weekly rotations, faces no incumbent on the airport pair. However, from nearby Istanbul Atatürk, there are three carriers offering competing services to Baghdad, including Iraqi Airways (IRQ) (17 times weekly), AtlasGlobal (ABE) (twice-weekly) and Turkish Airlines (THY) (twice-daily). The market is equally crowded on the airport pair between Atatürk and Erbil, where 33x-weekly frequencies are already offered, split across four carriers (Iraqi Airways (IRQ) (daily), AtlasGlobal (ABE) (daily), Turkish Airlines (THY) (12x-weekly) and Zagrosjet (GZQ) (daily).

October 2015: Boeing (TBC) has teamed up with Pegasus Airlines (PGS) to implement operations improvements for current and future 737NGs. Boeing Professional Services (PBS) teams will analyze historical maintenance data and develop a maintenance program focused on reducing scheduled maintenance labor costs, lowering materials costs and improving airplane maintenance ground time.

November 2015: News Item A-1: Turkish low-cost carrier (LCC) Pegasus Airlines (PGS) has posted passenger numbers for the first nine months of 2015 of 16.8 million, up +12.1% year-over-year.

Sales revenue for the period rose +14% to TL2.7 billion/$950 million, producing an (EBITDAR) of TL636.6 million, up +22% compared to the year-ago period.

During the nine-month time frame, fast-growing (PGS) added London Gatwick, Oslo, Kutaisi, Erbil, and Ovda to its international network and Kastamonu, Ordu-Giresun and Kars to its domestic network. As a result, it operated a total of 114,267 flights (66,844 within Turkey and 47,423 international flights, up +13.7% year-over-year). Block hours increased +15.6 hours to 205,839. (CASK) decreased -2% to 3.93 euro cents.

Pegasus (PGS) flies to 103 scheduled destinations in 40 countries, comprising 33 domestic and 70 international destinations.

News Item A-2: Pegasus Airlines (PGS) begins 3x-weekly, Eilat (VDA) - London (LGW) and - London (STN), via Istanbul (SAW) on December 1.
(PGS) has begun flights to Makhachkala, the largest city in the Northern Caucasus. With the addition of Makhachkala, the capital of the Republic of Dagestan, a Republic of the Russian Federation, (PGS) will offer 4x-weekly, London Stansted - and London Gatwick - Makhachkala, via Istanbul’s Sabiha Gökçen.

News Item A-3: (BOC) Aviation (SIL) delivered the first of three Boeing 737-800 airplanes to Pegasus Airlines (PGS). The remaining two are scheduled for delivery within the next three months.

News Item A-4: (CFM) International received an eight-year Time & Materials Support agreement with Turkish low-cost carrier (LCC) Pegasus Airlines (PGS). The agreement covers a total of 90 shop visits for the (CFM56-7B) engines powering its fleet of Boeing 737-800 airplanes. The agreement, which also includes the purchase for four spare engines, is valued at $500 million at list prices.

December 2015: "Explosion at Sabiha Gökçen Airport Kills One, Damages Pegasus Airlines (PGS) Airplane" by (ATW) Kurt Hofmann, December 23, 2015.

Pegasus Airlines (PGS) said an explosion at Istanbul Sabiha Gökçen Airport at 2:05 am local time on December 23 killed one cleaning staff member and injured another who was on board a (PGS) airplane. The cause has not yet been confirmed, although "The Telegraph" reported aviation experts say it appears to have been a bomb.

“We would like to express our great sadness to have received the news that our colleague Ms Zehra Yamac has lost her life in the incident,” (PGS) said.

According to several media reports, the terminal and several aircraft around the detonation had been damaged. Security measures at the airport have been increased and air traffic is running normal. Police are investigating the cause of the incident.

See results of investigation of the above, covered below on January 8th, 2016.

January 2016: "Mortar Rounds Reportedly Caused December 23 Explosion at Istanbul Airport" by (ATW) Kurt Hofmann, January 8, 2016.

Turkish news agency "Anadolu" has reported that mortar rounds fired near Istanbul Sabiha Gökçen Airport on December 23 led to the explosion that killed one cleaning staff member and injured another on board a Pegasus Airlines (PGS) airplane.

An investigation has revealed 4 mortar rounds were fired from a forested area around 2 km/1.2 miles from the airport at 2.15 am local time.

According to several media reports, the terminal and several aircraft around the detonation had been damaged.

It remains unclear who carried out the attack or if the assailants have any connection to a terror organization.

However, an Istanbul prosecutor responsible for the investigation has denied the reports. “The investigation has not been completed,” Chief Prosecutor, Fahmi Tosun said. He added that his office did not make any such claims about the cause of the explosion to any media organization.

Pegasus (PGS) said it will continue to release further information as soon as it becomes available, but no details have been released since December 23 and the statement has been removed from its website.

February 2016: Pegasus Airlines (PGS) has appointed Mehmet Tevfik Nane as general manager, effective March 18. He succeeds Sertaç Haybat who will maintain his position as a board member.

Nane served as General Manager and Head of the Executive Committee at CarrefourSA between June 2013 and February 2016.

“Although Mehmet Tevfik Nane is new to the aviation sector, he has achieved great successes in a range of highly competitive sectors prior to joining us,” Pegasus Board Chairman, Ali Sabanci; said.

Pegasus (PGS) flies to 103 scheduled destinations in 40 countries, comprising 33 domestic and 70 international destinations.

March 2016: News Item A-1: Turkish low-cost carrier (LCC) Pegasus Airlines (PGS) earned a 2015 net profit of +TL291.5 million/+$111.5 million, considerably improved over 2014’s figure of +TL15.7 million.

Full-year revenue was TL3.48 billion, up from TL3.08 billion a year previously.

Much of the improved profits came from favorable fluctuations in the currency exchange rate and cash flow hedging compared to 2014. The profit from operations was TL111.8, which was actually a decrease on 2014’s figure of TL143.3 million.

(PGS) (which is based at Istanbul’s Sabiha Gökçen Airport and has three other Turkish domestic hubs in Adana, Antalya, and &#304;zmir) continued its steady expansion last year, finishing 2015 with 67 airplanes, up from 55 a year earlier. Of the total, three were owned, 25 came under finance lease and 39 under operating lease.

(PGS) carried 22.34 million passengers in 2015, up +13.2% on 2014, while capacity rose +14.5%, resulting in a -1% dip in load factor to 79% LF.

Domestic travel increased faster than international sectors, with 13.81 million passengers flying within Turkey, up +15.4% on 2014, while international routes saw an increase of +9.8%, with 8.52 million passengers. Pegasus (PGS) increased its market share within Turkey to 28.3%, while it grew its international market share to 9.8%.

“2015 was a year in which (PGS) continued its double-digit growth despite the sluggish economy in Europe, geopolitical developments and issues with Istanbul’s infrastructure,” General Manager, Sertaç Haybat said. “We have yet again increased our market share and thereby continue the trend from previous years of growing above the sector average by growing at a rate 1.5 times faster than the sector.”

Pegasus (PGS) looks for continued growth in 2016 and plans to take delivery of first of 100 Airbus A320neos it has on order.

News Item A-2: Pegasus Airlines (PGS) begins 3x-weekly, Ankara to Amman service on March 20.

News Item A-3: Pegasus Airlines (PGS) has ordered 5 Boeing 737-800s, valued at approximately $505 million based on expected list prices at delivery.

(PGS) and its subsidiaries, Air Manas and Izair, already operate a fleet of 58 737-800s in a 69-strong fleet.

The order comes shortly before Pegasus (PGS) is due to start receiving the first aircraft in a major order for Airbus A320 family aircraft.

Privately owned (PGS) flies scheduled services to 33 destinations in Turkey and 70 internationally.

May 2016: Pegasus Airlines (PGS) reported a 1st-quarter net loss of -TRY173.6 million/-$61.2 million, widely sharpened from a net loss of -TRY50 million a year ago.

1st-quarter revenue increased +19% to TRY691.1 million year-over-year (YOY), while passengers carried rose +18.6% (YOY) to 5.36 million.

(PGS) said it had experienced a difficult quarter, notably because of the impact of several terrorist attacks within Turkey as well as in Brussels, which affected both yields and load factors, which dropped -1.7 points to 76.1% LF (YOY).

The results were also affected by tension with Russia; Turkish fighter jets shot down a Russian strike aircraft in December 2015 and Moscow has imposed sanctions on Istanbul. Turkey, previously a popular destination for Russian tourists, has also suffered from Western sanctions on Russia, which have devalued the rouble and made foreign holidays much more expensive.

(PGS) was directly affected by terrorism, when cleaning staff working on one of its aircraft were killed and injured by mortar rounds fired at it while on the ground at Istanbul’s Sabiha Gökçen Airport. “During what is regarded as the quietest season in the sector, we have implemented strategies that have helped us increase our aircraft utilization and the share of our ancillary revenue in total revenue,” (PGS)’ newly appointed (CEO) Mehmet Nane said.

The fleet grew by 10 aircraft, to 64, compared to the year-ago period and capacity grew +23% in (ASK)s, while costs (CASKs), excluding fuel, rose from 2.85 euro cents to 2.92 cents (YOY). Including fuel, (CASK)s dropped from 4.30 euro cents to 3.82 euro cents.

July 2016: Pegasus Airlines (PGS) has taken delivery of the 1st Airbus A320neo powered by (CFM) International (LEAP-1A) engines.

August 2016: Pegasus Airlines (PGS) recorded a sharp deterioration in its half-yearly financial figures, with (PGS) making a net loss of -TL202.9 million/-$70 million widened from a deficit of -TL42.2 million for the same period last year.

Half-year revenue was up +5% at TL1.49 billion, compared to TL1.42 million last time.

(PGS) said it had experienced “challenging conditions” in the tourism sector, which makes up a substantial proportion of its revenue.

A series of terrorist bombings in Turkey, together with an effective ban by Russia on its citizens taking holidays there following the downing of a Russian strike aircraft by Turkish interceptors late in 2015, has seen inbound tourism figures plummet. The Russian action has recently been rescinded following a rapprochement between the two nations.

Pegasus (PGS) said it carried +8.8% more passengers (13.46 million) than a year ago, although this was over a seven-month period. (PGS) has an extensive domestic network that has been largely unaffected by the terrorist incidents, which included an attack on Istanbul’s Atatürk International Airport in June that resulted in the deaths of 41 people.

(PGS) achieved +27% growth in its ancillary revenue in the 1st half compared to the same period a year ago. “Despite the challenging conditions the tourism sector has experienced in 2016 [and] despite the fall in demand on some of our routes, we achieved robust growth in our key target areas including for overall guest numbers, number of flights and turnover,” (CEO) Mehmet Nane said.

He said Pegasus (PGS) achieved +13.1% growth in passengers on its domestic routes between January and July and a +2.1% growth on its international routes. (PGS) also recorded a -9% reduction in costs, measured as (CASK)s, to 3.78 euro cents during this period.

October 2016: Pegasus Airlines (PGS) recorded a +7.4% increase in the number of passengers flown in the 1st 9 months of the year compared to a year previously, (PGS) announced.

(PGS) flew 18.1 million passengers, a notable rise against a backdrop of geopolitical problems that have severely affected the country’s important tourism industry this year.

Tensions with Russia saw the number of Russian tourists plummet over the 1st part of the year (relations between the 2 nations have now been patched up) while western European visitors have stayed away in droves because of terrorist attacks.

Analysis of the figures shows that (PGS)’ extensive domestic network (it serves 33 cities) helped passenger numbers keep expanding: numbers on Turkish domestic routes increased +10.9% to 11.42 million while the number of passengers on international routes saw a much more modest +1.9% increase to 6.66 million.

Pegasus (PGS) also increased the number of flights it operated in the 1st 9 months by 10% to 125,470 compared to the 1 year-ago period.
“The global tourism sector has experienced some challenging geopolitical conditions this year, especially during the peak summer months,” Pegasus Airlines (PGS)’ (CEO) Mehmet Nane acknowledged.

“At (PGS) we have continued with our investments despite the fluctuations in the sector and the declining demand on some of our routes and the result is that we have been successful in steadily growing our number of guests and flights.”

He has previously expressed optimism that the airline will bounce back in 2017.

“Including the delivery of the 1st aircraft from our Airbus A320 and A321 order in July, we have thus far received 4 new aircraft in total this year. Our A320neo aircraft add value to our company by reducing fuel per seat mile costs by up to 20% compared to its counterparts and benefitting the environment by offering quieter operations and reduced emissions, as well as enhancing our guest experience by providing a more comfortable journey.”

The average load factor in the January TO October 2016 period was 78.3% LF.

March 2017: Pegasus Airlines (PGS) dropped into the red in 2016, recording a net loss of -TL136.2 million/-$36.1 million, sharply reversed from a profit of +TL111.9 million in 2015. Revenue for the year rose +6% year-over-year (YOY) to TL3.7 billion.

The loss had been expected, but in September 2016, (CEO) Mehmet Nane said he anticipated (PGS) would bounce back in 2017. Although the situation was already improving by that point, he said the recovery would not be sufficient to offset a poor first half of the year.

Turkey’s airlines have been badly hit by a combination of external factors, including a series of terrorist incidents that have scared away many western European tourists.

Passengers carried in 2016 increased 8.1% (YOY) to 24.1 million, up from 22.3 million in 2015. The increase was largely attributable to a 10.7% rise in domestic passengers on Pegasus’ extensive internal route network.

Load factor for the year dipped slightly to 78.6%, down from 79% in 2015, as capacity, measured in ASKs, rose 9.1%.

Aircraft daily utilization also slipped in 2016, to 12 hours from 12.5 hours in 2015.

To help mitigate the effect of future external problems, the carrier formed a committee on the early detection of risk to advise the main board of directors on problems that may affect the airline.

The current 82-strong fleet is still largely composed of Boeing 737-800s, with 60 of Dec. 31, 2016, but increasing numbers of Airbus A320s are starting to make their presence felt, with 18 on strength at that date.

April 2017: Pegasus Airlines (PGS) is forecasting a cautious recovery this year, but expects real growth from 2018.

(PGS) experienced a difficult 2016, with the combination of geopolitical events and terrorist attacks within its home country, leading to a sharp downturn in tourism. However, (PGS) still succeeded in increasing passenger numbers by >8% to 24.1 million, but posted a loss of -TL136 million/-$36.4 million.

“Despite all the challenges of the past year, we achieved operational growth in 2016 and we are hopeful for 2017, but the real growth will come in 2018 and beyond,” (CEO) Mehmet Nane said April 10. “While the international flight market shrank by -15.5% we recorded growth of +3.9%,” he added. Fleet utilization averaged 12 hours daily.

As Turkey and Russia reached a rapprochement following a diplomatic chill caused by the shooting down of a Russian military aircraft, it was notable that (PGS)’ route map grew particularly strongly in Russia, with Grozny, Samara, Nizhny Novgorod and Volgograd added to the list of destinations.

In 2016, “Our priority was reducing costs. Through strategic steps such as bringing forward our Airbus (EDS) orders, with their higher fuel efficiency, and rescheduling our Boeing (TBC) deliveries, we have reformed both our cash flow and our fuel cost management,” Nane said.

Further fleet economies were achieved in 2016 and (1Q) 2017 “by renting out 4 of our Boeing 737-800 airplanes to Pakistan Airlines (PIA) and 2 to [Saudi Arabian (LCC)] Flynas on a wet lease,” he said.

“Then, on March 20, we sold 7 Boeing 737-800 airplanes to Air Lease Corporation (ALE) for $178.7 million. The income that we receive from the sale, which is expected to be completed by the end of October, will be used to pay for these aircraft, which we have added to our fleet using financial leasing and to realize new investments,” Nane said.

“With this sale, we have accelerated portfolio replacement to ensure optimization of fuel use within the scope of our 100-aircraft Airbus neo agreement from 2012 and increased the number of new A320neo purchases planned for 2017 from 3 to 6. Thus, our average fleet age will fall and we will achieve an improvement in aircraft operating costs,” he added.

Since May 2016, (PGS) has taken over all its ground management operations at its main hub of Istanbul’s Sabiha Gökçen airport. “With this project, we have achieved a major improvement in cleaning and reducing delays caused by ground services and boarding/de-boarding procedures. For example, we saw an improvement of +30% in baggage waiting times and a +35% improvement in lost/damaged baggage cases.”

Nane said (PGS) aims to increase the number of passengers +5% to +7% in 2017. “We have great faith in the Turkish economy and its tourism potential. That is why, though we see 2017 as a period of renewal, we expect the real growth to occur in 2018 and beyond.”

May 2017: News Item A-1: Pegasus will add 3 new Russian cities to its network next month, namely Samara, Nizhny Novgorod and Volgograd, following the launch of Grozny last month. It already flies from its home airport Istanbul Sabiha Gökçen to Moscow, Krasnodar and Mineralnye Vody. Like China, Russia has used outbound tourism as a foreign policy weapon, cutting off flows of travelers to countries it wants to punish, including Turkey last year after the 2 countries wrangled over events pertaining to the Syrian civil war. Turkish carriers are hoping Russian tourists come back in 2017.

Pegasus (PGS), meanwhile, is separately enlarging its Gulf footprint with new service to Abu Dhabi next month. It will be (PGS)’s 5th Gulf destination along with Dubai, Doha, Bahrain and Kuwait. Last year was
a horrible one for (PGS), which hopes for a better 2017.

News Item A-2: Pegasus Airlines (PGS) has added Saarbrücken (SCN) to its network this week, beginning a 2x-weekly operation from Antalya (AYT) on May 22. The seasonal flight, which will operate until October, initially begins with a Monday rotation, with a sector on Fridays to be added in early June. (PGS) operates to 20 airports from Antalya, with Saarbrücken becoming the 7th in Germany. Flown by its 189-seat 737-800s, the route faces direct competition from SunExpress (SNS), which offers the city pair 3x-weekly.

June 2017: A320-251neo (7703, TC-NBJ "Reyyan"), delivery.

December 2017: Pegasus Airlines (PGS) has converted 25 Airbus A321neo options to a firm order, based on an initial commitment made in 2012.

(PGS), which was historically a Boeing (TBC) operator, placed a firm order for 58 A320neos and 17 A321neos in December 2012 (along with 25 options) to support its expansion plans to 2023.

At the time, deliveries of the (CFM) International (LEAP-1A) powered aircraft were scheduled to run until 2022 and the order was valued at $12 billion at list prices.

On December 20, Airbus (EDS) announced that (PGS) had firmed the 25 options. “The order we placed in 2012 for 100 Airbus aircraft was the biggest order in Turkey’s aviation history at the time. We received the 1st aircraft of this order in (Q3) 2016 and now we have an agreement to convert 25 options into firm orders. We will continue to grow our fleet 1 step at a time,” Pegasus Airlines (PGS) General Manager Mehmet Nane said.

The aircraft will be supplied in Airbus’ Cabin Flex configuration, which includes door and fuselage changes aimed at improving cabin space utilization, as well as provision for greater under-floor fuel capacity for up to 4,000 nm transatlantic range.

January 2018: INCDT: A Pegasus Airlines (PGS) Boeing 737-800 with 168 passengers and crew had flown from Ankara and landed at Trabzon, Turkey on the Black Sea coast late on Saturday, January 13, 2018.

See photos: PGS-2018-01 787-800 INCDT at Trabzon, Turkey.jpg.

PGS-2018-01 INCDT 737-800 TC-CPF Trabzon, Turkey.jpg.

See video:

Everyone on board was evacuated safely, provincial Governor Yucel Yavuz said. No injuries were reported. The cause of the incident was being investigated, officials said. Mr Yavuz said the airport was closed for several hours while investigations took place.

State-run Anadolu news agency said there was panic on board as the plane went out of control. Photos show the 737-800 jet lying nose down on a muddy slope just meters from the water's edge.

"We tilted to the side. The front was down while the plane's rear was up. There was panic, people shouting, screaming," passenger Fatma Gordu was quoted as saying.

Pegasus Airlines (PGZ) said the plane "had a runway excursion incident" as it landed at Trabzon.


Click below for photos:
PGS-737-5L9 TC-AAG
PGS-737-800 - 2012-10
PGS-737-800 - 2016-02.jpg
PGS-737-82R TC-CPN 2015-05.jpg
PGS-A320 WITH SHARKLETS - 2015-03.jpg
PGS-A320neo - 1st Delivery 2016-07.jpg
PGS-A321neo 2017-11.jpg

December 2018:

0 737-4Q8 (CFM56-3C1) (2221-26279, /92 TC-AFM, EX-(ARL); 2653-26306, /94 TC-AFA; 3009-28202, /98 TC-APP; 2492-26290, /93 TC-JEE, EX-(THY), (ILF) LEASED. (28202 LEASED TO (OMR) 1999-11), 26292 LEASED TO (HGA). 26306 RETURNED 2003-03, LEASED TO (APL). 26279 RETURNED 2003-04, LEASED TO (CRM). RETURNED. 170Y.

1 737-4YO (CFM56-3C1) (2442-26081, /93 TC-AFU, EX-(BER); 1661-23979, /89 TC-AFJ; 1678-2981, /89 TC-AFZ; 1731-24345, /89 VT-JAS; 1841-24684, /90 TC-AFK; 1859-24685, /90 TC-APR; 1865-24687, /90 TC-APT), (GUI) LEASED (24687 WET-LEASED TO (KHZ) 2000-11) (24685 4-YEAR WET-LEASED TO (FUA) (24345 WET-LEASED TO (ALG) 2000-09) (24684; 26082 RETURNED (GEH) 2000-10, LEASED TO (PAL), 26081 RETURNED, 23981 RETURNED (GEF) LEASED TO (SAP) 2001-05. 24345; 24687; RETURNED 2002-11, LEASED TO (BTV). 170Y.

1 737-42R (CFM56-3C1) (2997-29107, /98 TC-APD), LEASED TO (WII) 1998-09, RETURNED FROM (KHZ) 2003-03, WET-LEASED TO (ABE) 2004-11. 170Y.

0 737-5L9 (CFM56-3C1) (3068-29234, /98 TC-AAG - SEE PHOTO), (MRS) LEASED. RETURNED. NOW WITH (AMV). 131Y.

0 737-5Q8 (CFM56-3C1) (2999-28201, /98 TC-AAD), (ILF) LEASED 2006-04. RETURNED. 131Y.

0 737-58E (CFM56-3C1) (TC-AAF - - SEE PHOTO - - "PGS-737-58E-2009-01"), LEASED 2006-06. RETURNED. 131Y.

1 737-8GJ (CFM56-7B) 37366, TC-CPS "PERI"), LEASED.

1 737-8FH (CFM56-7B26) (2195-35094, TC-AAK), (RBS) AEROSPACE LEASED 2007-03. 189Y.

1 737-8S3 (CFM56-7B26) (792-29250, /01 TC-APH), (SNR) LEASED 2001-03, WET-LEASED TO (ALG) 2004-07. 189Y.

16/6 ORDERS 737-800 (CFM56-7B26):

5 ORDERS 737-800 (CFM56-7B26):

2 737-800 (CFM56-7B26), (GEF) LEASED 2013-08.

3 737-800 (CFM56-7B), (SIL) LEASED 2015-11.

4 737-800 (CFM56-7B), (AZV) LEASED 2015-03.

1 737-804 (CFM56-7B) (32903, TC-CPP "ILAYDA"), LEASED.

2 737-809 (CFM56-7B) (117-28403, /98 TC-APM; 129-29103, /98 TC-APZ), EX-(CHI), (GEF) 7 YEAR LEASED 2001-04. 28403 WET-LEASED TO (KHZ) 2001-04. 28403 WET-LEASED (NTI) 2001-08. 189Y.

12 737-82R (CFM56-7B26) (224-29329, /99 TC-APG), LEASED TO (ALG) 2000-02. (849-29344, /01 TC-APU; 35699, TC-AAI "GULCE;" 2435-35700, TC-AAE, 2007-11; 2496-35701, TC-AAH, 2008-01; 2810-35702, TC-AAJ, 2009-02; 2937-35984, TC-AAL, 2009-06; 38173, TC-AAN, 2009-08; 40696, TC-AAV "SUDE NAZ" 2010-06; 40697, TC-ACP 2010-07; 40874, TC-AAY, 2010-06; 40875, TC-AAZ "MINA" 2010-06; 40876, TC-ABP "NISA" 2010-06), (ILF) LEASED. 29329 WET-LEASED TO (BRM) 2002-04, RETURNED FROM 2003-07. (AGAIN - 2003-10, RETURNED 2004-06). 189Y.

1 737-82R (CFM56-7B26) (38175, TC-AVP), WET-LEASED TO AIR MANAS (MBB) 2013-05, HAS "PEGASUS ASIA" ON TAIL - - SEE PHOTO - - "PGS-2013-05 - ASIA DIVISION." 189Y.

2 737-82R (CFM56-7B26) (40009, TC-CPK, 2013-02; 5222-40012, TC-CPM "JASMIN Y." 2018-02), 189Y.

8 737-82R (CFM546-7B26) (3212-40871, TC-AAS, 2010-03; 3227-40872, TC-AAT "ISIK" 2010-04; 3238-40873, TC-AAU "DURU" 2010-04; 40874, TC-AAY "DAMIA" 2010-07; 3526-40720, TC-ADP, 2011-01; 40724, TC-AEP; TC-ARP "NEHIR" 2011-11; 4288-40880, TC-CPG "CEREN", 2016-06 - SEE PHOTO; 40881, TC-CPJ "BEREN K" 2013-06). WITH WINGLETS. 189Y.

2 737-86J (CFM56-7B) (37740, TC-IZE "ELIF;" 3109-37746, D-ABKG), EX-(D-ABKB), EX-(BER), 2010-12.

1 737-86N (CFM56-7B26) (233-28591, /99, TC-APY), (GEF) LEASED 2000-06, WET-LEASED TO (KHZ) 2000-12, RETURNED FROM (KHZ) 2003-03. 189Y.

1 737-86N (CFM56-7B26) (542-28620, /00 TC-AAB), EX-(SNS), (GEF) LEASED 2004-05. 189Y.

6 737-86N (CFM56-7B26) (515-30231, 2000-04 TC-APL; 573-28628, 2000-06 TC-APN; 772-28639; 813-28642, /01 TC-APF; 828-28643), 1056-32732, /02 TC-API*; 28628 RETURNED FROM (ALG); 1104-32735, /02 TC-APJ*; 1113-32736, /02 TC-AAP*. 28642; 28643; WET-LEASED TO (ADH) 2002-02. 32735 WET-LEASED TO AIR SOFIA 2002-11. 28628 WET-LEASED TO (ALG) 2003-09. 30231 RETURNED (GEF) 2003-11. 28628 WET-LEASED TO (ADH) 2004-04. *WINGLETS. 189Y.

0 A300B4-200 (CF6-50C2) (207), (CVL) WET-LEASED FOR 5 MONTHS.

1 A320-214 (5879, TC-DCA "PINAR"), (BUL) WET-LEASED.

2 A320-214 (5902, TC-DCB; 5995, TC-DCD "DENIZ"), 2014-08.

1 A320-216 (3831, TC-DCF), EX-(EI-DTC), ORIX LEASED 2015-06.

1 A320-216 (6465, TC-DCE "ELLA"), LEASED.

1 A320-216 (6597, TC-DCG "SU"), EX-(F-WWDF), AVOLON (AZV) LEASED 2015-05.

0 A320-231 (V2500) (230, D-AFRO, 2001-05; 444, CAF 2001-06), (FTZ) WET-LEASED. 230; 444; RETURNED.

0 A320-200 (V2500) (496; 1411), (SKB) WET-LEASED 2001-06. 496; 1411; RETURNED.

1 +72 ORDERS A320-251neo (LEAP-1A) (7703, /17 TC-NBJ "REYYAN" 2017-06), 180 PAX.

1 +26 ORDERS A321neo (LEAP-1A) (7703, TC-NBJ "REYYAN" 2017-02), 1ST DELIVERY 2016-07. 220 PAX.


Click below for photos:
PGS-1-ALI SABANCI - 2013-01
PGS-1-ALI SABANCI - CEO - 2009-12
PGS-2-Mehmet Nane - 2017-06.jpg
PGS-4-GULIZ OZTURK - 2013-09
PGS-7-Emre Pekesen - R - 2015-11.jpg

Born in Adana, Turkey in 1969, Mr Ali Sabanci graduated in 1991 with a degree in Politics and Economics from Tufts University (USA). He began his career as a financial analyst for Morgan Stanley & Company Incorporated where he worked for 2 years after which he returned to study and received an (MBA) in International Finance from Columbia Business School in 1995.

Upon his return to Turkey, Mr Sabanci worked as a specialist at the Bahçekap branch of Akbank (TAS) until 1996, after which he was appointed Assistant Manager.

In 1997, Mr Sabanci began his career at H Ö Sabanci Holding as Head of Projects, until June 2001, when he was appointed Executive VP of Strategy & Business Development. In March 2004, he resigned from H Ö Sabanci Holding.

Ali Sabanci has been Chairman of Pegasus Airlines (PGS), part of (Esas) Holding since March 2004. He is also a board member at affiliates Promed Alarm, Orya A; and is the Chairman of (Esas). Mr Sabanci is also a member of (TÜSIAD), and (TABA).

Ali Sabanci is married with 2 children, and speaks Turkish, English and German fluently.

Interview: Pegasus Airlines (CEO) Mehmet Nane by Alan Dron (ATW) Plus, June 30, 2017.

Since Mehmet "(MN)" became (CEO) of Turkey’s 2nd-largest airline, low cost carrier (LCC) Pegasus Airlines (PGS) in March 2016, the country has been through a tourism ban by Russia (now removed), an attempted military coup, and several terrorist attacks. He talked about the company’s prospects to Alan Dron (ATW) "(AD)."

(AD): Pegasus made a net loss of TL136.2 million ($36.1 million) in 2016, compared to a profit of TL111.9 million for 2015. What is 2017 looking like?
(MN): 2016 was really challenging and, compared to that, I think any year is going to be much better. This year is not going to see a full recovery to 2015 levels, but it’s going to be much better than 2016.

(AD): Are tourists from Western Europe and Russia returning to Turkey yet after 2016’s -23% drop in numbers?
(MN): Most visitors come from Germany, with Russia 2nd and the UK 3rd. Tourists from Germany are +13% up. The highest increase in tourist numbers is from Russia. Compared to last year, it’s a +5 fold increase. In 2016 we had 24 million passengers, of which 15 million were international and 8.8 million domestic. In 2017, year-on-year we have increased our number of international passengers by +18%.

(AT): How is the domestic market holding up?
(MN): It’s getting stronger and stronger. Turkish Airlines (THY) is also increasing its number of passengers; we’re expanding the cake. Turkey is big: If you fly from Istanbul to the Iranian border, it’s 2¼ hours. If you fly 2¼ hours west from Istanbul, it takes you to Hungary or Austria. There’s huge potential for the future of domestic demand.

(AT): What do you see as being your most important international markets?
(MN): Europe as a whole, Russia, and the Middle East. We have started to fly new routes into Ukraine and to several destinations in Russia:– Grozny, Samara, Nizhny Novgorod and Volgograd. We also have a lot of ‘ethnic tourism’ (Turks working in Europe who fly home on vacation. We don’t have a specific area where we will concentrate our efforts in future, but if you asked us to choose a single area, because of the income potential, we would concentrate mostly on Western Europe.

(AT): You had rapid growth in ancillary revenue in 2016: is that continuing?
(MN): Definitely. When you look at 2015 to 2016, we increased our per passenger revenue [from ancillaries] by +3.7%, from €9.77 (+10.93) to €10.13. We achieved 23% of our total revenue in ancillaries in 2016 and we’ll continue to prioritize this area, because we believe there’s room to grow. We would like not only to provide customers with ticketing services but a door-to-door experience, for example, providing transfers to the airport and accommodation.

(AT): You have introduced your ‘3C’ strategy. What are the main points?
(MN): "3C": stands for (CASK), cash, and capacity. We would like to reduce (CASK), have the best possible cash management, and utilize capacity as efficiently as possible. The cash management structure must make a profit. If we have assets that we’re not utilizing (for example, an A320 simulator that we paid for in cash) we sold it to a simulator company and leased it back over 6 years. We’re talking to (CFM) about 8 engines for sale-and-leaseback. We’re selling our old fleet for cash and putting the proceeds into new aircraft, instead of using our credit line.

(AT): (PGS) flies to the UK. How are you coping with the ban on personal electronic devices (PEDs) being carried in the passenger cabin from certain countries, including Turkey?
(MN): We take (PED)s at the gate, put them into a special bag and give them to cargo [personnel]. It’s 3½ hours to the UK; people can survive, but they do feel that their freedom has been taken from them, even if it’s just for a small portion of their lives. If you’re going long-haul to the USA and need to work, it definitely affects you if you don’t have a laptop.

(AT): Do you believe the (PED) ban is justified?
(MN): The day after the laptop ban was brought in, there was an attack on the UK parliament. That gives the impression that the terrorism information received by the UK intelligence services was factual, and that the ban was not brought in for commercial purposes or to prevent Turkish carriers from increasing their market share.

Sertaç was born in 1952 in Istanbul, Turkey. He graduated from the University of Manchester with a degree in Aeronautical Engineering in 1976. After completing his military service with the Turkish Air Force in 1979, he began his career in the airline industry as the Maintenance Manager of Bursa Airlines. In 1982, he took up a position in the Engineering Team of Turkish Airlines (THY). After 5 years, he was appointed Maintenance Manager of Bosphorus Air Transport. In 1989, he returned to (THY) and worked in various positions, 1st as Strategic Planning & Investments Manager, then Marketing Director, and finally as Sales Director of Singapore, Malaysia & Indonesia.

Sertak was a partner at the Seser Travel Agency between 1993 to 1997, after which he rejoined (THY) as a Member of the Executive Management Team responsible for Finance & Corporate Planning. He was also a Board Member of Sun Express (SNS), the charter airline of the (THY)-Thomas Cook (JMA) joint venture, until 2003.

Serkat oversaw the acquisition of Pegasus Airlines (PGS) by (Esas) Holding at the end of 2004. He is currently the General Manager and a Board Member of (PGS). He provides tourism and airline investment consultancy services to (Esas) Holding.

Sertaç is married with 2 children and speaks Turkish, English and French.


"30-Second Interview" by 2013-09:

Guliz Ozturk, Senior VP Commercial of Pegasus Airlines (PGS) is a busy woman, having to negotiate the sometimes frustrating commercial path of Turkey’s #2 airline, controlling around 18% of all flights in Turkey and 19% of all seats behind that other Turkish airline that nobody really mentions. When not plotting how to outfox one of the world’s most dynamic flag carriers, she spends her time on deciding what to do with the $12 billion worth (75 firm orders and 25 options) of A320neos and A321neos that are now operating at (PGS)'s Istanbul Sabiha Gökçen base. (aa) caught up with Guliz, while she was in London, ready to join a panel of industry peers at the "World Low Cost Airlines Congress." (aa): Of the new routes launched by Pegasus (PGS) in 2013, have there been any which have not lived up to expectations?
Guliz Ozturk (GO): So far in 2013, we launched 7 new international routes (Belgrade, Sarajevo, Athens, Tirana, Barcelona, Doha, and Sochi). As you know, we need to give new routes the right amount of time to improve to match our expectations. Doha service is the weakest of all, but we are expect it to improve.

aa: Have any of the new routes exceeded the demand anticipated. Will the capacity therefore have to be changed in order to match the supply with higher demand?
GO: Despite the economic conditions in the destination countries, both Barcelona and Athens delivered results above our expectations. We certainly looked to add more capacity to Barcelona.

aa: What will be the split of the Airbus (EDS) order in terms of additional capacity versus replacement capacity? If many have been earmarked for growth, can you give us any clues on which regions will see increases or what new routes are planned?
GO: We have had a totally flexible fleet plan going forward. If our expansion is progressing profitably, then we will use more of the airplanes for growth, but if we are not achieving our objectives, then more of the new units would be used to replace the existing fleet. In the short-term, our network was expanded by 2 or 3 new points in Europe. We have been flying to Moscow (where we were already a designated carrier). There are plenty of opportunities in the (CIS) which we exploited and which are under-served in terms of east-west traffic flows into Europe.

aa: Are there any plans to introduce long-haul airplanes and therefore long-haul routes in the future?
GO: Our airplanes have a 6-hour range from Istanbul (enough to get us to places like Almaty and Bishkek and the whole of Europe) so we have a huge potential market to exploit. So we have no plan for long-haul airplanes. We just needed the bilaterals to become more liberalized so we could maximize the opportunity.

aa: Is there a strategic plan for a finite number of destination cities or countries that Pegasus (PGS) can serve from Turkey?
GO: There is no limit as long as the bilaterals are there to support it. Ideally, we like the restrictive frequency quotas that exist in the (CIS) to be lifted, like they are in Europe. Let’s not forget that previously, we had no international scheduled network. So clearly the situation has been getting better but it can be better. The Turkish (CAA) is working hard for us in its negotiations with other countries to improve access on our behalf. We are in constant contact with them about our wishes to liberalize the environment we find ourselves in. Sometimes we just wish that progress would move faster.

aa: Pegasus (PGS) is growing so fast. Where do you get your supply of pilots (FC) from? Local or from abroad, or a mix?
GO: We have a mixed (some from local and abroad) pilot (FC) recruitment strategy, but it currently stands more in favor of locals (80/20 split). We also have our own training academy.

aa: What is Pegasus (PGS)’ airplane utilization like and are you helped by a lack of curfews at your “home” airports?
GO: We do pretty well on this measurement compared to our peers and we are currently running at 12.2 hours per airplane. In the 1st half of 2013 we reached 12.1 hours, which was up by 1 hour from the 1st half of 2012. We also found the increased level of efficiency really delivers to the bottom line. So yes, we are lucky that there are no curfews in Turkey.

aa: What proportion of traffic at your Istanbul Sabiha Gökçen hub is connecting? And how fast is the connecting traffic growing?
GO: In 2012, 22% of all international traffic was connecting in Istanbul. For 2013, we were in the range of 22 - 24%. It improved as a result of us adding more spokes to the network. Connecting in Istanbul is easy, as it is a natural hub given its geographic location. Also the airport is very convenient for the passengers, as all the domestic and international traffic is under 1 roof.

aa: Which market would you most like to enter but can’t (yet) because of bilateral issues?
GO: Improved access to the Ukraine is a big frustration [Pegasus (PGS) is permitted to fly to Donetsk, Kharkiv, and Lviv only]. We would have liked to be permitted to fly to Kiev and Odessa as well. For a long time, the quotas remained the same. Then they were increased, but they were not given to Pegasus (PGS), and they were allocated to a different carrier. The frequencies were never used and were taken back and given to another carrier to use from Atatürk (as this was the apparently the airport that had to be used for flights to Kiev). However, since this decision, we have now seen Turkish Airlines (THY) given access to fly from Sabiha Gökçen to Kiev and Pegasus (PGS) was overlooked (which is very frustrating).

aa: What other bases will you open (and when) across Turkey?
GO: Presently we have several airplanes based at Sabiha Gökçen, smaller bases (of 5 to 6 airplanes) at Izmir and Antalya, as well as our smallest base in Adana. We are constantly looking at adding other bases in Turkey.


2015-11: Assistant Editor Jonathon Ford, Star Feature Interview:
Jonathon Ford, met with Pegasus Airlines (PGS)’ Sales VP, Emre Pekesen, at the World Travel Market to discuss (PGS)’ future growth.

While speaking to, Emre mentioned how Istanbul is starting to see strains in its capacity. The result is that 2016 and 2017 could potentially be difficult years for growth for Turkish carriers until extra capacity becomes available, which will be when the new airport opens in the city during 2018. One other key area of discussion was the development of (PGS)’ route network in the coming years with its fleet renewal program, and what Emre thinks of Turkish Airlines (THY)’s growth in Africa and why Pegasus Airlines (PGS) is struggling to compete in that market.

a.a: “So we have recently seen that (PGS) has just passed the 100 destinations milestone. Now that you have surpassed this figure, where is next for Pegasus to serve?”
EP: “We will be looking to add 5 to 6 new destinations from Istanbul. Most European trunk routes like Istanbul to London, Paris and Frankfurt are now covered. We applied to the Turkish Aviation Authorities to start services to Sochi in Russia. We also liked to introduce services to Manchester from our Sabiha Gökçen hub.”

aa: “So there you have mentioned a handful of destinations that you are hoping to serve. Are we likely to see additional capacity on existing routes as well?”
EP: “We believe that there is always room to grow. What we would like to do as an airline is enhance our product to help suite business traveler needs. Currently, we are seeing 2x-daily flights into London and Paris for example. We would like to see this increased to 4x- or 5x-daily on these types of city pairs from Istanbul to make the (PGS) product more appealing to business as well as leisure passengers.”

aa: “What makes (PGS) quite an interesting model in respect to other low-cost carriers (LCC)s in the European market is giving passengers connectivity options through (PGS)’s Sabiha Gökçen base. What is the current percentage of passenger traffic that connects?”
EP: “I’m glad you asked that question, because as an airline, we do feel that this differentiates us from other low-cost carriers (LCC)s, although other ones are starting to develop this model. At present, the percentage of traffic that we are seeing connect is approximately 28%, but this is increasing year-on-year and shows no signs of stopping. In relation to our unique model, as well is that we are developing a hub and spoke system at our Sabiha Gökçen hub, going against the conventional point-to-point network. We however, do focus of course on point-to-point traffic as well, especially with our other bases at Antalya, Adana, and Izmir. What also makes us a ‘non-traditional’ (LCC) is that we also distribute tickets through Global Distribution (GDS) systems. Now, as I have already said, we added around 5 - 6 routes from Istanbul, but this was not just because we wanted to serve them point-to-point, but also to offer passengers more options. Each new route that we open helps to further contribute to our current services. This means although we opened a route to Ordu-Giresun, loads on that route did not start off at full capacity, but they will help to grow load factors on other routes due to our hub connectivity.”

aa: “Of course one of the biggest threats to (PGS) is Turkish Airlines (THY). In an interview, Dr Temel Kotil (THY) then General Manager & (CEO) announced the importance of his carrier’s growth in Africa. What was the response of (PGS) to this and was there growth from (PGS) in that region?”
EP: “Unfortunately, the one thing that holds us back in relation to Africa is the bilateral agreements between Turkey and African nations. We as an airline are always looking at bilateral agreements to serve new markets, but of course it is a very slow process and it could take months if not years to be able to get access to markets we do not serve. However, it is of course not just down to bi-lateral agreements. Istanbul is now becoming a congested city in relation to aviation, meaning Sabiha Gökçen and Atatürk as well are not allowing airlines slots into Istanbul. 1 thing that is important for Turkish Aviation as a whole is being able to increase this capacity in order for us to grow further. That’s why it is important for Istanbul to get this new airport in time, as otherwise Istanbul’s growth could become very troubled in relation to competition markets.”

aa: “So there you have mentioned Istanbul’s New Airport, which is scheduled to be in operation by 2018, and you have also mentioned that growth in the meantime will be tough for Turkish carriers. In relation to the new airport, how will (PGS)’ operations be distributed when the new airport opens?”
EP: “Sabiha Gökçen has been and always will be our home base, therefore, when the new airport opens, (PGS) will not discontinue flights from there. What we also need to think about is that the new airport is in a completely different part of Istanbul which will also mean a new catchment area. We will be there at the new airport as with our aircraft order we cannot base them all at just 1 facility, so it will be a positive to have a dual hub strategy in Istanbul. What the route distribution will be at the moment, I cannot tell you. What we also need to consider is our fleet expansion. Fundamentally, the main goal with the introduction of the A320neo into the (PGS) fleet is to keep the fleet age low, but with our older aircraft we would like to keep some of them as the additional capacity will help us to grow into new markets once Istanbul’s additional capacity becomes available. We will also of course use our new fleet in new markets as well.”

aa: So you have mentioned that (PGS) will be taking delivery of next generation A320s. With this allowing (PGS) to extend its range in relation to the destinations that it can serve, where was the big step for (PGS) internationally when those aircraft arrived?
EP: “With the new Airbus fleet, it most certainly did extend our range in comparison to our Boeing 737s. Again in relation to new markets, there is of course the bilateral issues we faced. One area that is of considerable interest to us has been India and being able to offer European passengers a low-cost fare to reach India. Of course at this time the bilateral agreements and country relationships that Turkey has with other nations are becoming more liberal year-on-year, so by the time additional capacity arrives with the freeing up of space in Istanbul, the timings will be just right in order for us to potentially open routes to India in around 2018. What we will also be able to do possibly with the new fleet, is extend our range in Russia and Africa. What makes this fleet perfect for (PGS) is that a majority of the world’s population will be reachable from Istanbul using this aircraft. Geographically, Istanbul is a perfect location for this type of low-cost hub.”

aa: “So there you have mentioned Russia, which at the moment is having a tough relationship with the rest of Europe, especially the (EU). With Turkey not being part of the (EU), could this mean that Istanbul would be a great hub for connecting passengers between Russia and the rest of Europe?”
EP: “In Antalya there was a civil aviation discussion between Turkey and Russia. Nothing came about from this and the agreement discussion was delayed. Of course Turkey as well has bilateral agreements with Russia and this is close to its maximum capacity, so it would be tough to grow significantly in Russia until there has been an update to this agreement. We do envisage that we could be a good option for passengers traveling between the 2 markets with what is happening in the external environment, but one place where we would not be the best option, is for Moscow. Moscow is very close to Europe already and is very well connected with many major European cities. So mainly for this type of strategy to work, it would be to rural parts of Russia wanting to connect to the rest of Europe.”

aa: “So we have looked at fleet renewal and developing low-cost links between potentially India and Europe. Has (PGS) ever considered enhancing its operations to incorporating wide body airplanes to gain access to more distant markets?”
EP: “Over the past years, the low-cost long-haul model has become very strong and is proving to be strong in competition against full-service carriers and the head-to-head competition in long-haul has developed vastly. Istanbul is in the middle of Europe, Africa and the Middle East, meaning short-haul aircraft can reach the routes we want to serve no problem. While we still see room to grow in these markets, there is no need currently for (PGS) to consider adopting wide body airplanes. But never say never.”

aa: “Another big area for growth at the moment is the Turkish domestic market. Why is this? And how is (PGS) expanding domestically?
EP: “Currently the Turkish economy and the (GDP) are growing at a very healthy and sustainable rate, which is fantastic for us. In Turkey at the moment, a majority of cities are connected by bus which can take nearly 24 hours or more for people to go between cities. Within Turkey, we have developed a more enhanced point-to-point network. Recently, our domestic strategy was all about connecting east to west, but now we are also connecting north to south Turkey. Domestic connection growth is one of our leading markets within Turkey, and we still are continuing to see this. With this economic growth as well, we are also starting to see the possibilities of adding more European point-to-point routes becoming options from regional Turkey. For instance, we now offer a year-round service between Ankara and Vienna. We do offer some seasonal point-to-point routes, but with the way the economy is going, they could become year-round operations. What we need to be careful of with our current fleet is that if we do strengthen this part of our network, it could mean we lose opportunities to grow further at Sabiha Gökçen if new slots become available.”


( (2001-09).















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