Turkey’s flag carrier Turkish Airlines announced their decision to establish a new air cargo subsidiary. The airline said such a verdict was motivated by a desire to gain the competitive advantage.
In the statement published on November 27, 2020, the Board of Directors of Turkish Airlines announced that the airline would establish a new air cargo company, fully-possessed by the Turkish Airlines.
“Our Board of Directors decided to establish an air cargo company, wholly-owned by the Incorporation, due to the increasing trend on cargo operations and to take quick actions while improving focused strategies like new product development and vertical integration,” Turkish Airlines press release stated.
Currently, Turkish Airlines owns an air cargo division, Turkish Cargo, which proved to be lucrative to the airline during the pandemic period.
Unlike passenger transportation, cargo transportation has not been suspended during the pandemic. Therefore, due to the increasing demand of air cargo services, the new unit is expected to reinforce the airline’s position in the air cargo industry by creating a separate platform for foreign partnerships.
“The newly established Company will strengthen our position among the most crucial players in the cargo sector, by making the most of Turkish Cargo’s unique competitive advantage and create a separate platform for potential strategic foreign partnerships in the future,” the statement said.