SunExpress : XQ : SXS

SunExpress, the Antalya-based joint venture between Lufthansa and Turkish Airlines, is setting the stage to launch its new subsidiary, SunExpress Germany, and plans to double its fleet to 50 aircraft by 2015
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Beginning next month, the management of the new SunExpress Germany will take their positions, and flights with three leased 737-800s should start in May, SunExpress Managing Director Paul Schwaiger told ATW in Istanbul.

Based in Frankfurt, the new carrier will take over SunExpress flights between Germany and Turkey. Operating with a German AOC, it is permitted to transport passengers from the EU to other non-EU countries such as
Egypt.

The German unit's fleet should grow by an additional two aircraft per year up to a total of 15 737-800s.

SunExpress (Antalya) operates 25 737-800s (with an average age of 5.3 years) plus the three aircraft for the German carrier.

Under existing growth plans, the carriers will add a further 22 aircraft by 2015, but Schwaiger said that SunExpress cannot get any production slots for new 737s from Boeing before 2016 and that the carrier is looking at alternatives such as leasing.

He believes the airline is too small to economically operate both Boeing and Airbus fleets.

Schwaiger said that half the carrier’s business is on domestic routes within Turkey.

Last year, Turkish carriers transported 52.2 million domestic passengers, up 27.3% from 41 million in 2009.

SunExpress had a share of around 3.3 million passengers.

Looking forward, Schwaiger notes that 2011 will be a year of consolidation within the domestic market. “But in 2012 we will be looking for new ideas [regarding the domestic market],” he said.

The carrier does not expect to report a profit for 2010. “We phased out our 757s … added six 737s, created a new livery, and [did] many other things to prepare the company for the future, but all this cost a lot of money,” he said.

A total of 6.7 million passengers flew with SunExpress in 2010, up 19% compared to 2009.

It generated €510.7 million ($699 million) in total revenue.

Schwaiger is targeting carrying 8 million passengers in 2011 and a €600 million turnover.

The carrier has 1,400 employees, including 350 pilots and 650 cabin crew.