4Privatization – Catching the Wind Change in theTurkish government’s vision towards privatization in the 80’sMore attractive political and economic environment for investors (especially 2000’s)Being there at the right timeStability in Turkey despite global crisis
5Privatization – Catching the Wind 20002012ATU is only 12 years oldCombining expertise of it’s partners - Collaboration between specialized companies: TAV, Unifree, HeinemannOne of Turkey’s most performing successful BOT modelsConstant improvement: classic duty free store to a shopping mall concept
6Airport + Supplier + Retailer = Customer Satisfaction Success Formula Tekilalı foto, futbolcu adamlarBUSINESS MODELAirport + Supplier + Retailer = Customer SatisfactionSuccess Formula
7Business Model Efficiency Partnership Integration Level Integrated PartnershipRetail Service & Supply AgreementConcession ContractManagement ContractJoint VentureSupply Agreement
8Managing Partner & Supplier Business ModelOne of Turkey’s first integrated partnership modelsJoint ventureTAV Airports’ expertise in constructionUnifree Duty Free’s experience in Turkish Travel Retail marketGebr. Heinemann’s leverage in financial structure and expertise in global travel retailAirportManaging Partner & SupplierRetailerCustomer%50%50
10Collaboration Traditional models: standard rental agreements Conflict of interest on fixed rentLack of coordinationInefficiencyvsIntegrated partnership: collaboration onRental Fee + Profit SharingDesigning of AirportGuiding Passenger FlowData SharingAhl gidiş katı foto
11Collaboration: Key Challanges OPERATORMANAGING PARTNER & SUPPLIERRETAILERDesigning and coordinating retail mix:Duty Free, F&B, Lounges, Banks, Other commerical areasStrenghtening purchasing powerDefining categories, brands and product mixOrganizing logistics & Just in time deliveriesDefining + designing retail spaceDefining marketing strategyOffering a pleasant shopping environmentGuiding and analyzing traffic evolution and estimationCreating in-store layoutsEnsuring quality standards & Customer satisfactionAdaptation of offers to the passenger mix and trafficRevisions and optimizations in airport design and retail spaceCoordination in overall marketing strategyData sharing for further enhancements in efficiency and performance analysisAhl gidiş katı foto
12Airport Design Fundamentals of the building The base for orientation and creating a relaxing environment for the passengerEfficiency and smooth passenger flowElimination of stressSignage and guidanceNo competition between operating companiesInterior design - Life span: 3 to 5 yearsCreating an inviting, comfortable and stimulating environmentClear segmentation of categoriesModern designsShopping concepts - Life span: Seasonal to 10 YearsCreate an offer for all customer profilesMaximal seduction and surpriseClassic duty free shops + brand storesCombination of local and international brands‘Story telling’ to enlarge stopping powerIntegrated and interactive concepts communicated to the customer through technology and tastingsAirport design
15CONTINUOUS GROWTH DESPITE CRISIS Economic Crisis – November 2000Economic Crisis – February 2001N.Y World Trade Centre Terrorist AttackU.S and U.K launch war against IraqDeparture Main Shops Expansion- October 2003Suicide bombers attack two synagogues in Istanbul –Terrorist attack HSBC Bank in Istanbul –London hit by terrorist bombings –Arrival Shops Expansion – October 2006Departure Shops Expansion – December 2006Renovation in Departure Boutiques – March 2008Turkish Airlines joined Star Allianca – April 2008War between Georgia and Russia – August 2008Economic Crisis – First Quarter of 2009Swine Flu Epidemic – April 2009Sealed bag procedures started – October 2009Sales limits were decrease in all categories –Renovation in Arrival Shops – January 2010Increase in Cigarette Prices –Volcanic eruption in Iceland –Limits were increased in Arrivals. –Arab Spring – January 2011Economic Crisis in Europe – January 2011Syria Crisis – April 2012
16Subsidy Amount Given to Local Administrations to Support Tourism YENİ GÖRSELLE DEĞİŞECEKSource : Ministry of Tourism and Culture - Turkey
17The Next 25 Years: Turkish Economic Outlook Annual Average Real GDP Growth (%) Forecast in OECD Countries16th largest economy in the world.6th largest economy compared to EU countries.Expected to have the fastest growing economy among OECD members betweenGDP tripled between(2002 GDP - $ 231 billion, 2010 GDP - $ 736 billion)Grafik değişecek* GDP of a country is the major growth driver of the aviation sector.
19YENİ GÖRSELLE DEĞİŞECEK Source: Airports Council International
20The Next 25 Years: Turkey Total Air Passengers Total Population Propensity to Fly =Indicates how many times a person flies during a year.For Turkey, the propensity to fly is 1,4. (102 million/73 million).In developed countries the average is 3.0Turkey and other developing countries still possess huge potential for air passenger traffic growth.e.g. every person in Turkey flies 1,4 times a year on average.
23CONTRIBUTION TO ECONOMY Flow of Foreign InvestmentMajor source of income from privatizationEmployee EducationPromotionCulturalEnhancing Employment VolumeContribution to exportsSustainable Cultural DevelopmentCorporate Tax