Turkish Airlines (TK) plans a spin-off of its regional, low-cost carrier Anadolujet. The Turkish flag carrier is reportedly even ready to divest in what would be the new company. Let's look closely at the details of Turkish Airlines' plans.

Spin off to enable growth

Turkish Airlines (TK) is the parent company of the regional, low-cost carrier (LCC) Anadolujet. According to ch-aviation, the regional airline is based at Ankara Esenboga International Airport (ESB) and has a fleet of 64 aircraft, of which 59 are currently being operated. Reportedly, Turkish Airlines has announced it plans to spin off the regional carrier, leading Anadolujet to become an independent identity.

According to a statement made by Turkish Airlines' chairman, Ahmet Bolat, the decision stems from the evaluation of the current market dynamics. According to Bolat, if Anadolujet were to become a stand-alone unit, it would be much easier to boost its growth. Bolat also outlines the path Turkish Airlines would follow when spinning off the low-cost carrier.

First, Anadolujet would remain wholly owned by Turkish Airlines. Simultaneously, the parent company would either initiate a partial stake sale or stock market listing. Nonetheless, Turkish Airlines' chairman did not disclose any further details, dates, or times regarding the actualization of the plan.

Not the first attempt to make Anadolujet independent

It is not the first time Turkish Airlines has announced it is interested in giving Anadolujet its own independence. The original plan of spinning off Turkish Airlines' subsidiary into a stand-alone low-cost carrier emerged at the beginning of 2021. The then chairman, Ilker Ayci, stated the plan was to make Anadolujet an independent carrier, fully owned by Turkish Airlines in the first stage.

Subsequently, the parent company would have allowed external investors to acquire stakes in the regional low-cost airline. However, this strategy never saw the light of day in 2021, and in June 2022, Turkish Airlines' chief executive, Bilal Ekşi, confirmed the idea had been set aside. So why has the idea floated back again?

AnadoluJet 737-800 landing on runway
Photo: Getty Images

According to Turkish Airlines' chairman, Anadolujet has witnessed a strong recovery in the post-pandemic era. Currently, the carrier flies with a staggering 90% average load factor, which compares to an average of 80% for the whole airline group. Therefore, it is high time Anadolujet becomes an autonomous player, not only in the domestic market, where the carrier is predominantly focused but in the international one as well. Indeed, Bolat specified that the carrier would open new destinations in Europe after becoming a stand-alone entity.

A rapidly expanding fleet

Anadolujet, differently from text-book low-cost carriers, operates a mixed fleet. Indeed, the airline flies three Airbus 320-200neos, three Airbus 321-200neos, 38 Boeing 737-800s, and seven Boeing 737-8s.

Given that the carrier is a subsidiary of Turkish Airlines, it does not own an Air Operator Certificate (AOC) of its own but operates the fleet under Turkish Airlines' permit. Additionally, the carrier wet leases 13 Boeing 737-800s from the joint venture between Lufthansa and Turkish Airlines, Sun Express (XQ). However, the wet lease agreement is expected to be terminated by the end of 2022.

Witnessing the solid demand growth in 2022, the airline also strategically and rapidly expanded its fleet by adding the Airbus 320 family aircraft and Boeing 737-8s as whitetails which other carriers had not taken up.

Simple Flying reached out to Turkish Airlines for further comment. We will update the article with any additional announcements from the airline.

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  • Turkish Airlines A330
    Turkish Airlines
    IATA/ICAO Code:
    TK/THY
    Airline Type:
    Full Service Carrier
    Hub(s):
    Istanbul Airport
    Year Founded:
    1933
    Alliance:
    Star Alliance
    CEO:
    Bilal Ekşi
    Country:
    Turkey