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

A Study of the Strategic Responses of Turkish Airline Companies to the Deregulation in Turkey: DiscussionHowever, private airlines not only changed their corporate strategies, but also developed new competitive strategies with which they have been able to compete within the new framework in the domestic airline market. Thus, they have tried to support their corporate strategies. Borajet is the only exception to this, in the sense that its area of activity, in other words, its corporate strategy was presented as scheduled domestic transportation since the beginning, and this was how it found itself a place in this market with its competitive strategy.
As we consider the competitive strategies implemented by airlines, we can say that, with the basic logic it has, Onur Air aims to execute a cost leadership strategy although it does not embody some of the certain elements mentioned in the literature. Atlasjet is thought to have developed a differentiation strategy focusing on a narrower geography as a response to deregulation. Pegasus Airlines, unlike Onur Air, has developed a strategy closer to the cost leadership strategy mentioned in the literature. SunExpress, on the other hand, is executing a mixed strategy by having blended three strategies, namely the cost leadership, focus and differentiation strategies and adopted relevant practices from them that would create customer value. As for Borajet, it takes regional airline transportation as the model and adopts a focus strategy.
Turkish Airlines, on the other hand, did not compromise its services and continued to follow a differentiation strategy; however within the context of this strategy, it also developed cost reduction strategies. It modified its processes to ensure efficiency and productivity, developed new marketing strategies and established a sub-brand for itself, AnadoluJet, in order to better meet customer needs with a more appropriate product in the domestic market and to operate more efficiently. Financial services

It is known that following deregulation in Europe and USA, many traditional airlines followed the strategy of establishing sub-brands and thus adapted to developments. A similar reaction was seen in Turkey with Turkish Airlines. As we consider international examples from different parts of the world, we see that this strategy did not bring fruitful outcomes for traditional airlines because, as Porter suggests, it is never easy to implement two different strategies under a single roof and this strategy has brought nothing but failure to most operators. However, the outcome of this strategy for Turkish Airlines shall be seen in time.
If we are to consider the strategy of AnadoluJet separately, we can say that it has formed itself a network structure that would create strategic superiority in the market. Although it was mentioned during our interview with AnadoluJet that the airline is not in direct competition with private airlines, this strategy is still thought to challenge other airlines in the market because this structuring is enabling AnadoluJet to address a significant portion of the market and capture market power. Moreover, managers of private airline companies believe that AnadoluJet is in competition with them.
As a general evaluation, within the context of Porter’s competitive strategies, we can say that all three of Porter’s competitive strategies are available in the Turkish market. These strategies have obviously have been developed since deregulation. However, they are not identical to strategies in the literature and this difference is believed to be because of conditions in Turkey. In essence, these strategies are in accordance with Porter’s competitive strategies, and they may not be adopted in all their standard forms in all markets, so it would be wrong to standardize them for evaluation purposes.
As a result of the research, although there was some monopolistic structuring on some routes, the deregulation of 2003 brought competition to the domestic airline market and forced airline companies to develop different strategies by considering their competitors as well as their customers’ demands and requirements.
Restrictions on capacity enhancement at Ataturk Airport have a negative impact on network strategies. It would be advisable to build another airport in Istanbul or change the location of Ataturk Airport in order to eliminate all the capacity restrictions it now has. Apart from this, prices are shaped according to market conditions and airlines act liberally with regard to pricing. Thanks to this liberalization, operators are able to execute their price strategies in a more efficient manner.