Letter From the Chairman

Dear Passengers, It gives me pride to address you here, as I did last year, in the January issue of Skylife magazine, with some assessments regarding the future of Turkish Airlines.

In civil aviation as in every sector there are cyclic ups and downs. The developments experienced in Turkey over the last four years however cannot be attributed merely to an upward trend in the business cycle. What has happened could instead be more aptly termed a structural change in civil aviation, backed up by overall economic growth, and a leap forward from which there can be no slipping back.
Correctly reading the initiatives taken by the Ministry of Transportation, the management of Turkish Airlines has lent its full support to each and every one of these apt and timely innovative policies.
By the end of 2006, half of the 61 new aircraft we decided to purchase in 2004 had joined our fleet. Meanwhile, the 23 new routes we introduced last year have changed the face of Turkish Airlines' flight network. Not only that, but we upgraded our Call Center to a Customer Relations Center, making our 444 0 849 service even more convenient for you to use. Despite congested traffic at our Istanbul base, where the number of daily flights has risen from 300 to 500, we captured second place among our counterparts
in Europe for on-time takeoffs in 2006 with a success rate of 83%.
One component of the strategy we developed as the management of Turkish Airlines was to become a member of the one of the world's existing airline alliances. But determining which choice would offer the maximum benefit both to Turkish Airlines and its customers and to the alliance, and its customers, that we would join required a full two years of study and negotiations.
Finally, on 9 December, we signed a Protocol Agreement with Star Alliance, thereby initiating the membership process. With Star Alliance accreditation, the value we already place on quality, flight safety and high standards of service will gain further recognition throughout the world, and our reputation as a global airline will be assured thanks to the new choices, possibilities and opportunities we will offer our customers.
The past year saw the opening of new terminal buildings at several airports in Turkey including Ankara Esenboğa, Izmir Adnan Menderes, Dalaman and Gaziantep International. These new terminals reflect the dedication of the Turkish Airport Authority and are going to take Turkish Airlines to even greater heights.
In its ongoing quest for perfection, Turkish Airlines in 2007 is going to introduce a brand new concept of food and drink. As our newly formed company, Turkish-Do&Co, effects a revolution in this service, we have also made it one of our targets to become a global trademark in the Airline Catering Sector.
We have already set things in motion to turn one of our Airbus 310s in 2007 and two more planes in 2008 into cargo aircraft. For we aspire high in the area of cargo transport, which we believe is going to become even more important in the years ahead.
We have also started looking into the purchase of some of the new generation of Wide Bodied Long Range planes and will soon be making decisions as to what Turkish Airlines is going to acquire by 2015. We on the Board are determined to use our 73 years of experience in the best possible way to take Turkish Airlines into the future with confidence. It is a source of happiness to us that the decisions taken up to now have been right on target. All of our Turkish Airlines employees do their level best to earn the confidence of you, our valued passengers, and their sensitivity, strong moral sense and highly developed sense of responsibility are our best guarantee for the future.
With my best regards on behalf of the Board of Directors.

Candan Karlıtekin
Chairman of the Board