A Study of the Strategic Responses of Turkish Airline Companies to the Deregulation in Turkey: AnadoluJet

A Study of the Strategic Responses of Turkish Airline Companies to the Deregulation in Turkey: AnadoluJetAnadoluJet was established as a sub-brand of Turkish Airlines and it may be regarded as the most important reaction of Turkish Airlines to deregulation. In order to operate efficiently and productively in the domestic market where the dynamics underwent a change after deregulation, and to better respond to customer needs, Turkish Airlines established the AnadoluJet brand which operates a different strategy than its own competitive strategy. The basic reasons for establishing AnadoluJet were as follows: to respond to the demands and requirements of the customer profile in the domestic airline market with a more accurate product; to enhance the efficiency of Turkish Airlines’ flights from Ankara; and to make it profitable making Ankara a new hub for Turkish Airlines. As Ankara Esenboga Airport was structured as a hub for the domestic airline market, the aim was to relieve Turkish Airlines transit traffic at Ataturk Airport and make improvements concerning this traffic. Direct marketing

Having Ankara as a hub brings many advantages to AnadoluJet. Due to the geographical position of Ankara, following deregulation, AnadoluJet has been able to implement a H&S network strategy, extremely efficiently in the domestic airline market. Travelling time for domestic flights that start from Ankara, especially in the north-south direction, are currently shorter. Another important impact is that it enables an increase in flight frequency. Frequency is an important tool in AnadoluJet’s competitiveness. In addition, customer demands and requirements are analyzed in order to plan flight schedules efficiently. There is always less traffic in Ankara and, using this system, the waiting time for flights that have a connection in Ankara are shortened and thus the airline’s flight wave (collection and distribution) costs are reduced. The technical infrastructure of Esenboga Airport promises facilitated stop-overs in a shorter period of time with fewer problems and eventually at lower cost.
When all these attributes are taken into consideration, we see that Ankara has strategic significance in the structuring of AnadoluJet. AnadoluJet places all these advantages to the forefront and gains a significant competitive advantage.
AnadoluJet’s strategy is to abolish many services, reduce costs to a minimum with a simple product and offer low prices to passengers as a result. As a part of this strategy, the distance between seats is kept to a minimum and limited food and beverages are offered to passengers. As a sub-brand of Turkish Airlines, AnadoluJet suffers from the cost disadvantage of Turkish Airlines because of its size, so it cannot be a cost leader in the market. However, it possesses the features of airlines that follow a cost leadership strategy. In response to this, with its H&S network structure, it differentiates itself from the low cost airlines to a large extent.
Although it is possible to see similar practices at AnadoluJet that one might see at other low cost airlines in the market, when we look from a cost and price perspective, we cannot claim that the airline offers the lowest costs and lowest prices in the market. AnadoluJet formed its strategy by considering customer demands and requirements, as well as determining the niche markets and now aims to respond to the needs of these markets. For this reason, we can say that AnadoluJet’s strategy is not exactly one of cost leadership but is closer to a focus strategy. The most important components of its strategy are network structure, flight frequency and price.