VZCZCXRO8907
PP RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSR RUEHVK RUEHYG
DE RUEHIT #0027 0161253
ZNR UUUUU ZZH
P 161253Z JAN 09
FM AMCONSUL ISTANBUL
TO RUEHC/SECSTATE WASHDC PRIORITY 8698
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUEHEK/AMEMBASSY BISHKEK PRIORITY 0046
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY

UNCLAS ISTANBUL 000027 
 
SENSITIVE 
SIPDIS 
 
PARIS FOR FAA/TRICIA STACEY 
 
E.O. 12958: N/A 
TAGS: EAIR ETRD TU
SUBJECT: TURKISH AIRLINES CEO ON LANDING SLOTS, UPCOMING 
AIRCRAFT PURCHASE 
 
REF: 2008 ISTANBUL 522 
 
Sensitive but Unclassified. Please Protect Accordingly. 
 
¶1.  (SBU)  Summary.  On January 12, Turkish Airlines (THY) 
CEO Temel Kotil called on the Consul General to seek 
assistance in resolving concerns posed by the FAA related to 
a THY wet lease of three Boeing 777 aircraft from JET 
Aviation of India.  CG and Kotil discussed THY's planned 
purchase of up to 105 aircraft in light of the on-going world 
financial crisis, with the CG encouraging Kotil to give 
strong consideration to purchasing additional Boeing 
aircraft.  CG also thanked Kotil for THY's on-going support 
for Iraqi refugee resettlement and recent assistance with a 
sizable backlog of diplomatic pouches destined for Embassy 
Bishkek.  End Summary. 
 
¶2. (SBU)  During a January 13 call on the CG, Turkish 
Airlines (THY) CEO Temel Kotil raised the issue of THY's wet 
lease of three Boeing 777's from JET Aviation, an Indian 
company.  According to Kotil, THY hopes to use the 777's to 
fly the premium Istanbul - New York route; however, their 
application for landing slots has not yet been approved by 
the FAA. He asked if Mission Turkey could weigh in with the 
FAA on THY's behalf.  Noting that we were aware of the FAA's 
concerns, which appeared to be directed at the Indian 
aviation authorities not THY, the CG and Istanbul-based 
Principal Commercial Officer, who was also in the meeting, 
indicated anything THY could do to demonstrate that the new 
aircraft were truly under the control of THY, and that safety 
oversight was being exercised by the Turkish (vice Indian) 
civil aviation authorities might help their case. 
Specifically Turkish licensing of the pilots, certifying and 
registering the aircraft in Turkey, and making the case that 
the aircraft would be flown according to THY manuals and 
procedures with safety oversight by the Turkish civil 
aviation authorities might make a difference with the FAA. 
Kotil listened carefully to this argument, but indicated if 
THY had to wait until the wet lease contract period with JET 
expired in June, then THY would fly the 777's on the Bangkok 
route in the interim.  THY would, however, prefer to fly the 
777's on the New York route, which was more profitable, he 
noted. 
 
¶3. (SBU)  The CG asked about THY's business outlook in light 
of the on-going global credit crunch and economic downturn in 
the United States and Europe. Surprisingly, Kotil said THY 
was doing very well.  He specifically indicated that the 
downturn had been great for business (by driving down fuel 
prices) and the company was growing rapidly.  Kotil noted THY 
had grown by 21% in 2008 and growth had accelerated in the 
last quarter of 2008 despite the global financial crisis. 
According to Kotil, THY is in line to become Europe's 4th 
largest airline in 2009. 
 
¶4.  (SBU)  Kotil told the CG that THY's planned purchase of 
aircraft are proceeding on schedule.  The CG expressed our 
appreciation of THY's purchases of Boeing products in the 
past and encouraged Kotil to give favorable consideration to 
Boeings flexible, fuel-efficient aircraft.  Note/Comment: On 
November 7, 2008 THY issued a Request for Proposals to Boeing 
for the purchase of up to 105 aircraft (25 wide bodies with 
an option for 10 and 50 narrow bodies with an option for 20.) 
 THY's fleet currently numbers 120.  The December 17, 2008 
deadline for proposals was subsequently extended by 30 days. 
Deputy Prime Minister Nazim Ekren recently announced that 
France and Turkey will sign a protocol to co-produce 
mechanical and avionics systems for the Airbus A-350 (a 
long-haul, wide body jet.)  This would likely put pressure on 
THY to buy Airbus at least for this category of aircraft.  If 
realized, this reportedly could be the largest commercial 
aircraft deal world-wide in 2009, and would definitely be in 
the top three.  End Note/Comment. 
 
¶5.  (SBU) The CG also thanked Kotil for THY's on-going 
assistance in transporting Iraqi refugees to the United 
States, noting that THY's support for Iraq refugee 
resettlement as well as the recent decision to begin 
regularly scheduled flights to Baghdad (reftel) are examples 
of the unique contributions Turkish businesses can make to 
ensuring peace, freedom and prosperity in Iraq.  She also 
expressed our appreciation for THY's assistance in clearing a 
recent backlog of official diplomatic pouches destined for 
Embassy Bishkek.  About 70 pouches were affected, and this 
was a significant morale issue for Embassy Bishkek. 
Wiener