Turkish Airlines' Dominance and the Absence of European Legacy Carriers

4 November 2024

Istanbul is served by two major airports: the new Istanbul Airport (IST) and Sabiha Gökçen Airport (SAW). Opened in 2019, Istanbul Airport replaced the overburdened Atatürk Airport (now ISL), which faced significant capacity constraints. While Istanbul Airport, located on the European side of the city, became the hub for Turkish Airlines, Sabiha Gökçen, located on the Asian side, primarily caters to Pegasus Airlines and AJet, a subsidiary of Turkish Airlines.

A New Era at Istanbul Airport

The opening of Istanbul Airport marked a key moment for Turkish aviation, significantly expanding the country’s air traffic capacity. In just a few short years, Istanbul Airport has rapidly risen to become one of the largest airports in Europe, largely driven by the growth of its home carrier, Turkish Airlines. The airport's strategic location, coupled with Turkish Airlines’ aggressive expansion strategy, has helped it evolve into a critical hub for both passenger and cargo traffic.

Unlike its predecessor, Atatürk Airport, which struggled especially with accommodating budget carriers, IST has been a magnet for both full-service and low-cost airlines. However, the airport does not offer direct financial incentives to airlines but focuses on keeping base fees low, making it an attractive option for new carriers. Additionally, Istanbul Airport provides support for local marketing and sales campaigns to help airlines establish themselves in the market.

Thanks to these favorable conditions, several new carriers, including Air Baltic, Wizz Air, and easyJet, launched routes to IST in 2023, connecting Istanbul to a variety of European destinations.

The Absence of Major European Legacy Carriers

One of the most noticeable trends at Istanbul Airport is the absence of many prominent European legacy carriers. For several years now, flag carriers such as Austrian Airlines, SAS, SN Brussels Airlines, TAP Air Portugal, Aer Lingus, Iberia, Swiss International Airlines, Finnair, ITA Airways, Bulgaria Air, Luxair, and Icelandair have been conspicuously missing from IST’s list of operators. This is rather uncommon, as major European aviation gateways are served by these carriers. Many of these airlines are members of the Star Alliance, the same global network that Turkish Airlines belongs to, yet they do not serve Istanbul, either directly or through the city's alternative airport, Sabiha Gökçen.

Interestingly, most of these carriers had operated routes to Istanbul in the past but have since withdrawn from the market. Their absence raises important questions about Turkish Airlines’ influence and market dominance at IST.

Istanbul Airport is currently served by the following European legacy carriers only: Air France, KLM, British Airways, Lufthansa, Air Serbia, LOT, Aegean Airlines, Croatia Airlines, TAROM, Air Montenegro, and Air Albania (in which Turkish Airlines holds a 49% stake).

Turkish Airlines: Too Dominant?

Turkish Airlines’ dominance at IST is undeniable. With the world’s largest destination portfolio, the carrier offers an extensive network that rivals any European legacy airline. This unparalleled reach, coupled with competitive pricing and high-frequency connections, makes it difficult for other airlines to compete.

Moreover, while many of the absent carriers are members of the Star Alliance, Turkish Airlines' extensive codeshare and alliance agreements do not seem to facilitate direct service from these airlines to Istanbul. Austrian Airlines, for instance, does not offer any codeshare services with Turkish Airlines, and Turkish Airlines itself has few or no codeshare arrangements with most of the other European legacy carriers operating out of European hubs.

The Role of Incentives and the Status Quo

While Istanbul Airport’s incentives, such as low base fees and marketing support, have attracted a handful of carriers, they haven’t yet managed to lure back many of the European legacy airlines that once served the airport. Despite these favorable conditions, none of the absent legacy carriers have resumed or launched new flights to Istanbul from their respective hubs.

Low-cost carriers have also been slow to establish a strong presence at IST. Ryanair is notably absent, and the operations of easyJet, Transavia France, and Wizz Air remain limited. Norwegian, Volotea, and Eurowings are also missing from Istanbul Airport’s roster. However, Transavia France is expected to expand its operations in 2025, signaling a potential shift in the airport’s appeal for European low-cost carriers.

Conclusion

Istanbul Airport, with its impressive infrastructure and strategic location, is poised to become one of the most important hubs in global aviation. However, the absence of many European legacy carriers raises questions about Turkish Airlines’ dominance in the market. Despite the Star Alliance membership that connects Turkish Airlines with many of these abstinent airlines, there seems to be little direct service from them to Istanbul. Does the sheer scale of Turkish Airlines’ operations and destination network make competition too difficult for other airlines? Will the incentives offered by IST eventually encourage more European carriers to return?

As it stands, Turkish Airlines’ hold on Istanbul’s skies remains firm, and it will be interesting to see how this dynamic evolves in the coming years—especially with the potential expansion of low-cost carriers and any shifts in the strategies of European legacy airlines.