The scope of the cooperation agreement of the Turkish Exporters Assembly (TİM) with Turkish Airlines (THY) for discounted cargo transportation has been expanded to reduce the logistics costs of the exporter. According to this, in the air cargo discount campaign, the number of destinations was increased to 46, additional tone capacity was provided, the discount rate was increased, and product ranges were expanded.

TİM Chairman İsmail Gülle said, “In the first 8 months of the year, our air cargo export increased by 28 percent from $5.3 billion to $6.8 billion. In the protocol signed today, the scope of export products was expanded with eggs, fresh fruits and vegetables, and fish. The destination was increased from 28 to 46. The discount available to exporters through list prices has been updated to 10-35 percent. Hopefully, with this new protocol, we will increase the share of air export much higher. Türkiye will rise with export. The export will also rise in the wings of THY.”

Turkish Exporters Assembly (TİM), the only umbrella organization of 100,000 exporters with 61 exporter associations and 27 sectors, continues its efforts to increase its export by reducing the costs of air cargo transportation. In this context, TİM and THY had signed a cooperation last year that gives a great advantage to Turkish exporters in global trade. Turkish Cargo was discounting between 10 percent and 30 percent for additional capacity and 28 destinations heavily used by exporters. Thanks to the cooperation that contributed greatly to Türkiye’s export mobilization, a total of nearly 1.2 billion dollars of high value-added products were exported in 4 months, while the scope of the agreement was expanded.

46 destinations in 35 countries

With the new protocol signed between TİM and THY; ten percent to 35 percent discount will be applied for air cargo transportation of Turkish export products covered by general cargo, eggs, fresh fruits and vegetables, and fish in 46 destinations in 35 countries. An additional capacity of 6,050 tons was allocated with the campaign, while the product ranges were expanded. The campaign will continue until December 31, 2021, when product contents are provided not only in tone but also under tons. “Air Cargo Cooperation Signing Ceremony”, held at Ankara ministry of commerce regarding the new protocol, was carried out with the participation of Minister of Commerce Mehmet Muş, Minister of Transport and Infrastructure Adil Karaismailoğlu, TİM Chairman İsmail Gülle, and Turkish Airlines Chairman of the Board and Executive Committee İlker Aycı.

“Export teamwork”

Speaking at the ceremony, İsmail Gülle, chairman of the Turkish Exporters Assembly, emphasized that THY is the country’s pride. Stating that THY was the most flying network carrier in Europe with 1333 daily flights between August 16 and 22, Gülle said, “While discussing the sinking of the global giants of the sector during the pandemic period, THY continued its way by opening new flights despite all the negative situations. When the borders were closed and transportation from the roads became almost impossible, Turkish Cargo, with its solid infrastructure in air logistics, delivered Turkish products safely and quickly to numerous destinations and stood by its export family. So much so that in May 2020, when the impact of the pandemic was most intensely felt, the share of exports by air exceeded 10 percent. Export is a team business. Every order received by the exporter is a serious process that requires an organization with its financing, production, marketing, and logistics. I would like to take this opportunity to congratulate our flag carrier aviation brand in the presence of Mr. İlker, chairman of the Board of Directors, for its contribution to export. Hopefully, with this new protocol, we will increase the share of exports by air much higher.”

Air cargo export reached $6.8 billion

Stating that the cooperation between TİM and THY regarding the cargo discount made in December 2020 contributed significantly to exports, Gülle continued: “It has started to offer a 10 percent to 30 percent discount on the transportation of Turkish export products by air cargo. We determined the destinations in such a way that our exporter would get maximum efficiency by analyzing which points are used intensively in logistics and the number of exports to these points. The figures clearly show the positive results of our TİM-THY Air Cargo Protocol. In the first 8 months of the year, our air cargo exports increased by 28 percent from $5.3 billion to $6.8 billion. These figures have further encouraged us to expand our cooperation. Today, we are expanding our cooperation with a new protocol for our exporters.

“Our export to the countries to be discounted exceeded 86 billion dollars in 8 months”

Noting that they exported 86 billion 376 million dollars to the countries under the new protocol in the first 8 months of 2021, an increase of 38 percent compared to the same period last year İsmail Gülle said, “With the signed protocol, our exporters will be able to deliver Turkish export products to 46 destinations in 35 countries with discount rates in the range of 10 percent to 35 percent the scope of General Cargo (GEN), Egg (HEG), Fresh Fruit and Vegetable (PEP) and Fish (PES). Among these 35 countries, it is also important that all of the top 5 countries we export to are included.”

“Turkish exporter turned crisis into opportunity”

Stating that the Turkish exporter, who evaluated the global demand increase and the transformation process in global supply chains very well after the shock environment created by the first wave of the pandemic, turned this crisis into an opportunity, TİM Chairmen Gülle said, “We are carefully interested in all levels of export to make these opportunities gained permanent and sustainable. In this context, we have received many requests at the point of transportation by air in consultations with our exporters. To respond quickly to these demands, the TİM THY Air Cargo Cooperation Protocol, which emerged as a result of our consultations with İlker Aycı, was presented to our exporters for five months on December 4th. In the protocol signed today, the scope of export products was expanded with eggs, fresh fruits and vegetables, and fish. The destination was increased from 28 to 46. The discount available to exporters through list prices has been updated to 10-35 percent. I believe that we will achieve many successes in exports with THY. I would like to thank THY for this important cooperation. Türkiye will rise with export. The export will also rise in the wings of THY.”

Aycı: Turkish Cargo has established export bridges around the world

İlker Aycı, chairman of the Board of Directors and Executive Committee of Turkish Airlines, said of the cooperation: “Our flag carrier cargo brand continues to be a lifeline for our exporter to reach strategically important markets with its wide service network. It is a proud occasion for the Turkish Airlines family to reinforce our contribution to our exports, which are the engine of our economy with one of the highest growth rates in the world. While the cargo sector contracted worldwide during the pandemic period, Turkish Cargo continued to grow and proved its success during the challenging period. During this difficult period, it has established export bridges for our exporters all over the world. With our soon-to-be-opened SmartIst cargo facility, our growth momentum will accelerate and a new era of air cargo transportation will begin.  We believe that Turkish Cargo and TİM cooperation will continue to be the triggering force for both our country and our companies.

46 destinations to move on sale

In cooperation with TİM-THY, Turkish Cargo will apply discounts on the air cargo transportation of Turkish export products to Algeria, Amman, Amsterdam, Stockholm, Bahrain, Belgrade, Berlin, Beirut, Baghdad, Bangkok, Bangalore, Mumbai, Brussels, Basel, Cairo, Guangzhou, Paris, Dhaka, Delhi, Dusseldorf, Dubai, Hamburg, Hanoi, Hong Kong, Houston, Seoul, Islamabad, Kabul, Kiev, Karachi, Kuala Lumpur, Kuwait, Lahore, London, Linz, Chennai, Miami, Munich, Milan, Oslo, Ho Chi Minh City, Tel Aviv, Tunisia, Vilnius, Warsaw, and Zurich lines.

Source: Turkish Exporters Assembly
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According to the news of Hürriyet Daily News, Turkey’s national flag carrier Turkish Airlines served 68.8 million passengers in the first 11 months of 2019, the company announced on Dec. 10.

The number of passengers carried by the firm was around 64 million in the same period last year.

Turkish Airlines’ seat occupancy rate — passenger load factor — was 81.7% in the January-November period.

The number of passengers carried via international flights rose by 2.2%, according to the airline.

“Cargo/mail carried during this period increased by 9.5% and reach 1.4 million tons,” the company said.

Meanwhile, the number of passengers Turkish Airlines carried in November rose by 3.7% to reach 5.7 million year-on-year, with an 85% seat occupancy rate.

Turkish Airlines, founded in 1933, flies to 317 destinations in 126 countries with its fleet of 348 aircraft, including passenger and cargo planes.

Last year, the company carried 75.2 million passengers with a seat occupancy rate of 82%, and this year it aims to reach 80 million passengers on domestic and international routes.

Source: Hürriyet Daily News / link: http://www.hurriyetdailynews.com/turkish-airlines-serves-some-69m-passengers-in-jan-nov-149712
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Major outcomes of the Strategy are as follows:

Legal Ground
1. The number of the countries with which Turkey signed Trade and Economic Cooperation Agreementincreased to 39 in 2015 while it was 23 in 2003. This agreement establishes a bilateral regular follow-up mechanism where several subjects stretching from trade, investment and finance to SMEs, health and technology.
2. Free Trade Agreementswith 4 African countries are in force now when it was literally none in 2003.
3. Reciprocal Protection of Investment Agreementswith 19 countries have been signed so far, however, Turkey had this agreement with only 6 countries in 2003.
4. Prevention of Double Taxation Agreementswith 10 African countries are effective today in comparison with that it was only 4 in 2003.

Institutional Capacity
1. The number of Turkish Embassiesin Africa recorded as 39 African countries and Trade Counselor Offices in 26 countries while they are 7 and 4 respectively in 2003.
2. TIKA (Turkey’s Aid Agency) Officesin the continent are operating in 15 countries.
3. Foreign Economic Relations Board has established Business Councilswith African counterparts in 31 countries.
4. As of present,Turkish Airlines fly to 48 destinations in 31 countries in the continent. In 2003, it was merely flying to North Africa.

Trade and Investment Figures
1. Turkey’s trade volume with Africa totaled USD 19.5 billion in 2015, up 16% from 2008 and 258% from 2003. Turkey’s export in 2003-2015 increased almost six folded and import has more than doubled in the same period.
2. Turkey’s share of Africa’s trade volume rose to 2.3% in 2014and the share of Africa in Turkey’s trade volume was 7% in 2015. In 2003, they were 1% and 4.5% respectively.
3. Turkish FDI (stock) in Africa has exceeded USD 6 billion in 2015whereas it was less than USD 100 million in 2003.
4. Turkish contractors have continued to build Africa in 2015 and the volume of the projects undertaken by Turkish companies has grown to USD 55 billionso far since the early 1970s.

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.