Dear Guests, For many of us, the last days of the year are a time of looking back and assessing the year just past and making plans for the future.

Here at Turkish Airlines when we look back we see that we have chalked up a number of successes in 2007, and we plan to pursue our efforts with the same zeal and sensitivity in the year ahead.

Turkish Airlines is proud to fly to 139 different destinations in Turkey and around the world. In the first eight months of 2007 we also took first place among the top ten biggest airlines in terms of growth in capacity and traffic, as well as being number one in least amount of lost luggage for the period as well.

During the ten months from January through October 2007 we increased the number of passengers we carry by 16.6% over the same period in 2006 from 14 million to 17 million. We also increased the number of seats we offer per kilometer by 13.1%, from 30,705,000 to 34,714,000. At the end of a successful year, we are therefore pleased to have realized all the goals we set ourselves for 2007. In this sense, the year we are leaving behind is not only a year in which we increased the number of passengers we carry and therefore boosted our revenues; it also stands out as a year in which we achieved our quality targets one by one.

As the process of our joining the Star Alliance, one of the world's leading airline alliances, moves rapidly forward, we are continuing to hold talks on cooperation with the world's foremost airlines. Last month we talked with executives of Malaysian Airlines, Air Astana and Syria Airlines about cooperation on technical subjects and in the commercial and training areas as well as on creation of joint projects and new opportunities that could arise to the benefit of both parties. Important progress was made in the talks, and a protocol was signed with Syria Airlines and Air Astana on the subject of developing cooperation in the technical, commercial and training areas. Groups of the airlines' executives will meet soon to concretize this cooperation and begin coming up with projects. Not only that, in June the International Air Transport Association (IATA) is going to hold its 2008 annual meeting in Istanbul, which will thrust Turkish Airlines and Turkey's aviation sector in general into a prominent position internationally.
The serious initiatives taken in recent years to broaden our transportation network and to strengthen our candidacy for becoming a regional base through our Turkish Technic, Inc. and Flight Training Center have paid off by further enhancing our Company's operations and productivity in the name of Turkish aviation. At the same time they have enabled us to offer our passengers an even wider array of alternatives.

Here at the Turkish Airlines family, we would like to congratulate you, our valued passengers, on the Feast of Sacrifice and to express our heartfelt wishes for a Happy New Year.

Temel KOTİL, Ph.D.
CEO and Member of the Board