Strengths During the nine months ended Sep2009, Turkish Airlines claims it was the most cost efficient

among its European Peers, with a cost per ASK of EUR 5.05 cents, a 19% year-on-year improvement (although RASK was also lower, down 17% in the period), and for the lowest CASK at the airline in at least the past five years, aided in part by lower-than-average personnel and fuel costs. Turkish Airlines implements effective network and marketing strategies to increase profitability in parallel to growth, and to meet capacity increase objectives. The Company is expanding its network by adding new destinations, having become acknowledged worldwide for its expansion strategy. Thanks to its geographical position, stanbul offers connection of closer proximity when compared with other potential transfer points. stanbul bridges both East and West, which enables the use of a narrow body fleet, thus providing a considerable cost advantage and contributing to competitive superiority. The cost ratio of Information Technology in overall costs was at 0.9% in2012. And according to research conducted by SITA, this ratio was at around 2.3% in other airlines in 2011. This indicates that the Company s managing Information Technology operations less costly and more efficiently when compared with the industrial average. Today Turkish Airlines is a global brand. The company made a great progress thanks to its geographical position advantage, measures taken against crisis and cost cutting policies, high service quality against low operational costs, emphasis put on customer satisfaction, successful subsidiaries, strong flight network and organic growth strategies.

Weakness The push is reflected in Turkish Airlines' massive aircraft order book, which will have a considerable financial drain on the airline in coming years Despite its commitment to an alliance strategy, in practice, Turkish Airlines' aggressive organic expansion push is still out of alignment with its alliances mantra. A relative newcomer to the alliances fold, Turkish is underutilizing its Star partners networks to/from and beyond Turkey.

Opportunities The Turkish Government also plans to invest USD350 billion over the next 25 years to improve transportation and communications services. Turkey, meanwhile, is one of three countries that have applied for EU membership, with membership to potentially create numerous opportunities for the aviation/tourism industry. Turkish Airlines, seeking to grow further at the stanbul hub, plans to reallocate certain of domestic and international flights from Sabiha Gken Airport to Atatrk Airport in 2013. Technology advances can result in cost savings, from more fuel efficient aircraft to more automated processes on the ground. Technology can also result in increased revenue due to customer-friendly service enhancements like inflight Internet access and other value added products for which a customer will pay extra.

Threats There are five firms except TA operating in the industry. It is expected that the new firms will enter to the industry and that will increase competition, which is highly competitive presently in the industry. 2.The rapid and unplanned growth in the industry increased the vacant positions for licensed staff needed, and training institutions could not respond vacancies resulting from this rapid growth. 3.The rise of fuel prices in the world and the the excess taxes on the fuel prices in Turkey: the fuel costs are very essential in pricing process of the tickets. The recent increases in fuel prices all over the world has negative effects on air transportation. Turkey have borders to Middle East countries, the bottle and political turmoil in this region and the uncertainty in geopolitics will negatively affect the Turkish aviation which is operating so close to the corresponding region, consequently can be a barrier to the development of tourism and air transportation.