1. Hazırlayan World Statistics Day Workshop Panel-1: New Understandings and Approaches in Airline and Tourism Business Airline Business - Market Outlook Source: Boeing Moderator: Assoc. Prof. Dr. Ender GEREDE Anadolu University Faculty of Aeronautics and Astronautics

2. Air travel is growing Anadolu University Faculty of Aeronautics and Astronautics, Associate Prof. Dr. Ender GEREDE 2

3. Passenger traffic is resilient Anadolu University Faculty of Aeronautics and Astronautics, Associate Prof. Dr. Ender GEREDE 3

4. Airline productivity rising Anadolu University Faculty of Aeronautics and Astronautics, Associate Prof. Dr. Ender GEREDE 4

5. Airline productivity rising Anadolu University Faculty of Aeronautics and Astronautics, Associate Prof. Dr. Ender GEREDE 5

6. Increased frequencies and nonstops markets As air travel continues to grow, airlines have a choice about how they want to grow their business. How to accommodate the growth? – Increasing airplane capacity and/or size – or – adding more frequencies and nonstop markets to networks. – Which one do passengers prefer? Increasing frequency and new nonstop markets. Anadolu University Faculty of Aeronautics and Astronautics, Associate Prof. Dr. Ender GEREDE 6

7. Increased frequencies and nonstops markets Anadolu University Faculty of Aeronautics and Astronautics, Associate Prof. Dr. Ender GEREDE 7

8. High Oil price volatility - low oil prices Anadolu University Faculty of Aeronautics and Astronautics, Associate Prof. Dr. Ender GEREDE 8

9. Significant trends in airline business in last two decades Privatization of airlines, deregulation, bilateral and multilateral liberalization of the markets, open sky agreements, – Globalization, more airlines in the market and higher competition, – More complex and dynamic industry: Higher uncertainty in the business environment. Higher service quality, bigger and wider networks, lower ticket prices – Higher air travel demand Trends in airline business : – LCCs, airlines within airlines, strategic alliances, outsorcing, virtual airlines, aviation business airlines Anadolu University Faculty of Aeronautics and Astronautics, Associate Prof. Dr. Ender GEREDE 9

10. LCCs As the LCC business model continues to grow, more point-to-point flying is occurring. – In 1994, LCCs provided less than 10 percent of all short-haul flights (less than 3,000 miles), the majority of which Southwest flew. Today, LCCs fly almost 30 percent of short-haul flights. – There are regions of the world—such as Europe, Southeast Asia, and North America—where this trend is more common. Source: Boeing Anadolu University Faculty of Aeronautics and Astronautics, Associate Prof. Dr. Ender GEREDE 10

11. LCCs The low-cost business model continues to drive growth in short to medium haul markets. Passengers have access to a wider range of destinations and the benefit of the speed and convenience that flying offers over traditional modes of transportation. Source: Boeing Anadolu University Faculty of Aeronautics and Astronautics, Associate Prof. Dr. Ender GEREDE 11

12. GDP and demand forecast Based on what has happened historically and what is expected to occur, world GDP is anticipated to grow at 3.1 percent annually over the next 20 years. During the same period, passenger traffic is forecast to grow by 4.9 percent and air cargo traffic by 4.7 percent. Source: Boeing Anadolu University Faculty of Aeronautics and Astronautics, Associate Prof. Dr. Ender GEREDE 12

13. Mr. Márcio Favilla He graduated in Economics at the Federal University of Minas Gerais (Belo Horizonte / Brazil) and Master in Development Studies (Regional Development and Planning) at the Institute of Social Studies (The Hague / Netherlands). After an extensive career in the public sector in Brazil, including seven years as Vice-Minister of Tourism and Vice-Minister of Institutional Relations of the Presidency, in 2010 joined the World Tourism Organization (UNWTO) in Madrid, Spain, as an Executive- Director, now in charge of the Operational Programmes and Institutional Relations of the Organization. 13

14. Mr. Levent Konukçu Levent Konukcu has been working at Turkish Airlines for 12 years. After holding different positions, 4 years ago he was promoted to be the Senior Vice President of Investment Management. He is responsible for managing the investment decisions of all aircraft and aircraft related equipment and parts such as all types of engine, simulator, aircraft interior parts, etc. He is also responsible for preparing the long term strategic plans and fleet plans of the company. Accordingly, he coordinates all types of aircraft acquisitions contracts. He supervises the department preparing business intelligence reports analyzing all major KPIs supporting the decisions of the company executives and managers. He graduated from Aeronautical Engineering Department of Istanbul Technical University. 14

15. Communication Assoc. Prof. Dr. Ender GEREDE Anadolu University Faculty of Aeronautics and Astronautics – http://www.anadolu.edu.tr/en http://www.anadolu.edu.tr/en – egerede@anadolu.edu.tr egerede@anadolu.edu.tr – http://www.linkedin.com/pub/ender-gerede/36/a22/a0b http://www.linkedin.com/pub/ender-gerede/36/a22/a0b Postal Address: Anadolu Universitesi, Havacılık ve Uzay Bilimleri Fakultesi, Ikieylul Kampusu, 26470 Eskisehir / Turkey Anadolu University Faculty of Aeronautics and Astronautics, Associate Prof. Dr. Ender GEREDE 15