Privatization of Air Traffic Services in Turkey International Symposium on Sustainable Aviation (ISSA-2017), Kiev, Ukraine, 10 – 13 September, 2017 Privatization of Air Traffic Services in Turkey Suat USLU Anadolu University suslu@anadolu.edu.tr Introduction Advances in aviation technology that occurred after the 1980s and developments in aviation system brought about profound changes occurring in the structure of aviation. The face of increasing demand for air transport in Europe region, including Turkey, it has become necessary to reconsider every aspect of air traffic services and restructure. The rapid developments, revealed the need to investigate different models and solutions for air traffic services providers. This poster focuses on the privatization of Turkish air traffic services. Therefore, privatization propose of the organization responsible for providing the air traffic services of Turkey DHMI (General Directorate of State Airports Authority) is investigating. For this purpose, investigated similar practices in the world and based on these a privatization application suggestion for Turkey. Privatization Applications in the Turkish Civil Aviation Sector The first step towards privatization in the aviation sector was taken with the "Turkish Civil Aviation Law" No. 2920 issued on 14 October 1983. With this law, civil aviation activities in Turkey were released and private persons and organizations were allowed to transport (SHGM). In the following years, the privatization of the national airline and flag carrier THY (Turkish Airlines) was on the agenda. Privatization activities in the aviation sector have also been seen in ground handling and catering services. ÇELEBİ Air Service Incorporated Company has entered the sector in 1986 as a ground handling company. This ground handling company, a private enterprise, has achieved significant success in the short term. For this reason, HAVAŞ's (Airport Ground Handling Incorporated Company) market share and competitive power have gradually decreased. For this reason, privatization of HAVAŞ has come to the agenda and a significant portion of the company, 60%, was sold in 1995, the remaining 40% sold in 1998. Founded in 1958 and serving alone for many years in the field of catering services, USAŞ (Aircraft Service Incorporated Company) was privatized by selling 70% in 1989 and 30% in 1993. Air Traffic Services in Turkey and Privatization The privatization practices for air traffic services and airports are the areas where privatization activities in the aviation sector in Turkey are at least in the spotlight. In 1985, the Master Plan for Privatization to the Morgan Guaranty Trust Company, a US company, was prepared by Turkey. According to this plan DHMİ is among the third priority to be privatized. However, there has not been much work to be done. Especially with the implementation of a number of applications related to the privatization of airport terminals, the idea of privatization especially in air traffic services has not yet entered into the agenda of Turkey (Karluk). Practices in the World Nearly 20 countries around the world have privatized air traffic services in various ways (CANSO). The air traffic services organizations listed in Table 1 were privatized at different rates with different customization methods previously described for privatization. For example, Aerothai, a Thai air traffic services provider, is a limited liability company, with 9% of its shares owned by airlines and 91% owned by the state. Austria's air traffic service provider, Austro Control, was incorporated in 1994. Germany's air traffic service provider DFS was established in 1993 as a limited liability company. It is managed according to private business rules. The UK's air traffic service provider has been a public-private partnership since 2001. The shares are owned by the airlines and NATS employees. Transport Canada, formerly Canada's service provider, was privatized in 1995 and became NAV Canada. In Switzerland, Radio-Suisse was initially providing air traffic services. In 1987, Swiss control was established as a limited company. In 1996, Swiss control became financially independent from the government (CANSO). In 2001, the military and civil air navigation services of Switzerland were gathered under a single organization and the name of the new company was "Skyguide" (http://www.skyguide.ch/en/company/factsfigures/history). After declaring Ukraine's independence, a national air traffic service provider was needed. It was decided to establish an institution that owns the state but owns the autonomous structure and owns the operating capital. Thus, in 1992, UkSATSE was established (CANSO). Table 1. Countries and Privatized Organizations Results In recent years, the privatization of air traffic services has gained momentum. Day by day, privatized or autonomous air traffic systems are on the rise. There are important practices in this regard in various countries. Air traffic services in Turkey must also be privatized. The privatization should take place primarily with employees and then with stock sales to airline operators, ground handling organizations and catering services organizations. The most effective way to improve service quality, reduce cost and price, reduce complaints is to include those who provide this service and this service to users in the system. Shares sales should be in small amounts, primarily in 5-10% range, the results of this privatization should be carefully monitored and sales should be continued accordingly. The Turkish air traffic system must be brought to a commercial understanding with a slow transition. When air traffic services are customized in Turkey, profitability and efficiency in this area will increase. Service quality will increase. Problems arising from the fact that DHMİ is a public institution will be removed from the scene. Country Organization Name and Abbreviation Thailand Aeronautical Radio of Thailand (AEROTHAI) Spain Aeropuertos Espanoles y Navegacion Aerea (AENA) Czech Republic Air Navigation Services of the Czech Republic (ANS CR) South Africa Air Traffic and Navigation Services (ATNS) Australia Airservices Australia New Zeland Airways Corporation of New Zealand Austria Austro Control Germany Deutsche Flugsicherung (DFS) Ireland Irish Aviation Authority (IAA) Lithuanian Latvijas Gaisa Satiksme (LGS) Netherlands Luchtverkeersleiding Nederland/Air Traffic Control the Netherlands (LVNL) Britain National Air Traffic Services (NATS) Canada NAV Canada Portugal Navegaçao Aerea de Portugal, E.P. (NAV-EP) Romania Romanian Air Traffic Services Administration (ROMATSA) Swiss Swiss Air Navigation Services (Swisscontrol-Skyguide) Ukraine Ukrainian State Air Traffic Service Enterprise (UKSATSE) CANSO-Civil Air Navigation Services Organization. Corporatisation of Air Navigation Service-A Special Report. Switzerland-Geneva: CANSO Publication. 1999. SHGM-Sivil Havacılık Genel Müdürlüğü/General Directorate of Civil Aviation. Turkish Civil Aviation Legislation. Ankara: Republic of Turkey Ministry of Transport. 1992. http://www.skyguide.ch/en/company/factsfigures/history Karluk, S. Rıdvan. State Economic Enterprises in Turkey and Privatization. Istanbul: Esbank Publication, No:5. 1994. References