Letter From The Chairman

Dear Passengers, Once again in the January issue of Skylife, we would like to invite you, our valued passengers, to share in our dream for the future.

We know that whether or not you accept our invitation is directly dependent on the sense of confidence and appreciation we engender in your hearts and minds. Naturally such feelings do not arise all by themselves. They will only come about when the Turkish Airlines trademark, which has developed with integrity by being considerate and sensitive to its customers' demands while relying on sound economic rationales, achieves permanant status.

To date we have broken record after record with outstanding growth rates, and we have told you about that success. It is plain to see, however, that coming to you with the last four years' success story of sheer uninterrupted growth is not enough. We are also in the position of having to grapple with all the difficulties attendant on operating in the service sector, all the while sustaining a Turkish Airlines culture in which ensuring traffic safety without compromise in all its aspects is a minimal condition. It was our performance in this area, namely in sustaining a preferred position relative to our competitors while developing quality products and services, that was far more important to us than growth.

It gives us pleasure to see that Turkish Airlines, which has increased its number of passengers from 10 million to 20 million in four years, in addition to this growth has also leaped an entire quality class according to the assessments of the independent auditing firms. If you can now make your reservations with ease from among a wide range of alternatives, obtain your ticket easily, experience relatively little difficulty reaching and boarding your plane, if your plane takes off and gets you to your destination on time, and if we can give you pleasure and peace of mind during your flight, then we have achieved our purpose. We are ever aware that we will earn your favor only as long as the value we produce in return for the price you pay us is satisfactory to you.

There was a time when you used to hear an announcement, “Thank you for flying Turkish Airlines,” when you traveled on routes where only Turkish Airlines could fly in any case, and this struck you as ironic. Those days when there were no alternatives and no airline other than Turkish could fly on any route are now a thing of the past. This new competitiveness has given Turkish Airlines a tremendous dynamism. And the new liberalization has developed and deepened our sector and, most importantly, has radically changed the way we view the future of our Management and our employees.
Our growth, development and transformation initiatives left their stamp on the last four years. From here on out the number of our airplanes is going to rise from 103 to 119 by the end of 2008. Not only that but the frequency of flights on the routes we serve is going to be increased to offer you more flexibility and alternatives. Our membership in the Star Alliance will be in place by the end of March, and you are going to benefit from the spanking new opportunities this alliance will provide. In particular, maximum comfort and the latest in entertainment systems will be standard when our in-cabin renovation work on the wide-body, twin-aisle airliners in service on our long-haul flights is complete. And when it comes to food&refreshments, your appreciation and feedback have been tremendous. This must be the difference between serving and merely going through the motions.

From now on we are going to pay maximum attention to the gap between your expectations of the service you will encounter when you purchase a Turkish Airlines ticket and your actual in-flight experience. Among other things, we are going for product diversification in meeting the demands of the different customer strata. We started by enlisting the SunExpress airline, fifty percent of which we own, for domestic and international flights originating in Izmir. Our overtures to the price-sensitive customer group on short-haul routes are also going to be further expanded this year.
As part of the same product diversification policy, we are about to complete our preparations for a new Ankara-centered operation under Turkish Airlines management and with the Turkish Airlines guarantee. Linking our capital to all parts of Anatolia through adequate flight frequency, we are going to offer under a different 'trademark' a brand new product in which ticket prices will be kept reasonable since costs will be relatively low in terms of product design. At the same time, this new Ankara-based product is going to serve the function of feeding the direct Turkish Airlines flights we are soon going to be making from Ankara to the world's leading capitals. Indeed, if we think of Anatolia as an embroidery frame, then starting right now we are going to develop a regional 'flight service network' like stitches on a canvas.

We on the Board of Directors decided to launch a new initiative by developing a strategy we outlined earlier. We put together a new dream for the hundredth anniversary of the founding of our Republic. This dream of ours is one of a Turkish Airlines with some 250 airplanes, that is a global player in the full sense of the word, whose area of service goes beyond the potential offered by Turkey alone, and that does its job seriously, effectively and productively. The upcoming celebration of the 75th anniversary of our founding on 20 May 2008 is sufficient to embolden us to dream this dream. We hereby declare 2008 as a year in which we will strive with pleasure and enthusiasm to make that dream come true.
We remember with mercy and gratitude Mustafa Kemal Atatürk, our primary source of inspiration and the founder of our Republic and of Turkish Airlines, for leaving us a foundation upon which we are able to realize our dreams one by one.

Sincerely yours,

Dr. Candan Karlıtekin
on behalf of the Board of Directors of Turkish Airlines, Inc.