2002 Annual Report - Turkish Airlines

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18 • 2002 TURKISH AIRLINES annual reportA cargo tracking facility wasintroduced for cell phones making useof WAP technology as well as thewebsite of Turkish Airlines Cargo.In 2002, in addition to the decisionsupport module, truck haulage andpallet/container ULD trackingprograms were developed for theTACTIC Automated Cargo System.TACTIC serves at 48 international andfive domestic stations, making up atotal of 53 on-line cargo servicelocations.Fast Cargo transport and Courierservices were started on the NewYork-Istanbul route.In 2002, a total of 110,794 tons ofcargo was carried by Turkish Airlinespassenger aircraft, of which 26,346tons were carried on domestic flightsand 84,448 tons on internationalflights.In order to meet the cargo demand atdestinations where Turkish Airlinescargo capacity was not adequate, atotal of 8,112 tons of cargo wascarried to Frankfurt, Nürnberg andMaastricht by cargo aircraft leased onACMI basis during 2002.Additionally, cargo aircraft was leasedon hard block capacity basis,undertaking an extra cargo haulage of879 tons.In 2002, the destinations to which thelargest amounts of cargo carried wereto New York, Maastricht, Frankfurt,London and Bangkok.Calculated on the basis of average USdollar rates during the year, a totalcargo revenue of US$ 150 million wasearned in 2002, of which US$ 7.4million came from domestic flightswith a 7% increase compared to theprevious year. International flightsaccounted for US$ 142.5 million, anincrease of 15% compared to theprevious year.Turkish Airlines Cargo holds the entiredomestic cargo market. Its share inthe international cargo market was44% in 2002.2001 2002 02/01 Change (%)Number of Landings 109,028 102,607 -5.9Passenger Flights 108,716 102,354 -5.9Cargo Flights 312 253 -18.9Cargo (Tons) 104,778 118,906 13.5Passenger Flights 97,668 110,794 13.4Cargo Flights 7,110 8,112 14.1Mail (Tons) 4,648 5,999 29.1FuelThe Turkish Airlines Gas Station, aPetrol Ofisi distributor, became fullyautomated in March 2002 with newpremises and facilities. The vehiclerecognition system becameoperational, by which fuel is suppliedupon presentation of a card furnishedspecifically for this purpose.During the Company’s domestic andinternational flights, jet fuel tankeringwas done resulting in savings ofaround US$ 1.5 million.A total cargo revenue ofUS$ 150 million was earned in2002, of which US$ 7.4 millioncame from domestic flightswith a 7% increase comparedto the previous year.International flights accountedfor US$ 142.5 million, anincrease of 15% compared tothe previous year.
2002 • 19commercial developmentsSales and MarketingIn 2002, IATA agency commissionswere reduced from 9% to 7% in Italy,the Czech Republic and Romania.The Airline Passenger ServiceCommitment aiming to provide aconsistent level of service to passengersbefore, during and after the flight hasbeen developed by European Airlinesthrough negotiations with Europeancountries, the European Commissionand passenger representatives. TheService Commitment has beenaccepted by Turkish Airlines, all relevantpreparations have been completed andthe policy has been launched.Miles&Miles Special PassengerProgramMiles&Miles is Turkish Airlines’ FrequentFlyer Program where frequent flyers areoffered many privileges including: freetickets, companion tickets andupgrades - in return for miles earned byflying with airlines that have anagreement with Turkish Airlines,overnight hotel stays, car rentals andpurchases made by using theShop&Miles card, a Garanti Bank cobrandedcredit card.As of December 31, 2002, the totalnumber of Miles&Miles SpecialPassenger Program members reached465,917; 456,208 of these memberswere Classic cardholders with 9,709holding Elite cards.Miles&Miles members can obtaindifferent kinds of information on thewww.tkmilesandmiles.com websitesuch as mileage status, personal data,promotions, membership guide andnews bulletins. Members can alsoredeem missing miles, print out theirmileage summary, update theirpersonal profile and access the detailsand rules of the Miles&Miles program.Members are also able to perform thesame functions using the kiosks set upat Istanbul Atatürk and AnkaraEsenbo¤a Airports.On March 1, 2002 CIP Express waslaunched as an additional servicewhereby all passengers with EconomyClass tickets can use the CIP roomsthroughout Turkey in return for a fee.Code Sharing AgreementsWithin the scope of Turkish Airlines’code sharing agreement withSunExpress Airlines, as of July 1, 2002Turkish Airlines became the marketingcarrier by introducing SunExpressoperated Antalya-Munich flights into itsflight schedule with its own flightdesignator.A code sharing agreement was signedwith IranAir and joint flights on theIstanbul-Tehran route began on August1, 2002.A code sharing agreement was signedbetween Turkish Airlines and Air Chinaeffective from June 30, 2002 and codesharing operation was introduced onIstanbul-Beijing-Shanghai-Beijing-Istanbul route. These code share flightsare operated solely by Turkish Airlines.Bilateral Air ServicesAgreementsAs a result of the Civil Aviation meetingheld in Tashkent between Turkey andUzbekistan on October 24-25, TurkishAirlines was granted the fourthfrequency on the Istanbul-Tashkentroute.On November 13-14, following the CivilAviation meeting held in Sanaabetween Turkey and Yemen, theBilateral Air Transport Agreement wasrenewed. The code share clause wasadded to the agreement whereby eachcountry’s airline was entitled to 14frequencies per week.After the Civil Aviation meeting held inAnkara between Turkey and Japan onSeptember 10-11, Turkish Airlines wasgranted the right to co-terminalize itsIstanbul-Tokyo and Istanbul-Osakaflights during the 2002-2003 winterschedule.As a result of the Civil Aviation meetingheld between Turkey and Azerbaijanon January 22-23, 2002, TurkishAirlines was granted the right tooperate 12 frequencies per week onthe Istanbul-Baku-Istanbul route.The Civil Aviation meeting held inIstanbul on April 14 between Turkishand Nigerian Civil Aviation authorities,resulted in a Bilateral Air TransportAgreement signed between the twocountries.
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