Turkish Airlines plans Irish leasing subsidiary for fleet modernisation strategy

Turkish Airlines, a Turkey-based carrier, is establishing a dedicated aircraft leasing subsidiary in Ireland to support fleet modernisation and create new revenue streams, according to Airspace Times.

The strategic move involves retiring older aircraft models and replacing them with newer, more efficient alternatives whilst leveraging Ireland's position as a global hub for aircraft leasing.

The carrier's current fleet comprises 361 aircraft, including Airbus and Boeing models such as the Airbus A319, A320, A321, and Boeing 737 and 777 families.

The new leasing company aims to generate approximately $2.2 billion (€1.91 billion) in revenue with about 100 employees, taking advantage of Ireland's favourable regulatory and tax environment.

Fleet modernisation involves phasing out models including the Airbus A319, A320, A321, A330, and Boeing 737 and 777 variants. Aircraft still in excellent condition will be leased to regional carriers or emerging markets, converting them into capital assets. The leasing operation will enable the airline to retain control over aircraft whilst adapting to market demands and diversifying revenue sources.

Ahmet Bolat, Chairman of the Board of Turkish Airlines, stated: "The leasing business offers higher margins and a stable revenue stream, which is crucial for a diversified business model."

By capitalising on current market conditions such as rising acquisition costs for new aircraft and supply chain challenges, Turkish Airlines aims to lease used aircraft at attractive rates.

The initiative positions the carrier to become a significant player in the global aircraft leasing industry, supplementing core passenger operations with a profitable financial division whilst reducing operational risks associated with fluctuating fuel prices and geopolitical tensions.

Read the full story on Turkish Airlines' planned Irish aircraft leasing subsidiary.