TAV Airports will continue to focus on emerging markets its CEO Sani Şener told a press briefing at the 20th World Routes Development Forum in Chicago, yesterday. He explains that the Turkish airport operator, which operates 14 airports around the globe, will continue to focus on opportunities within the markets around the world.
“Emerging markets will always be our target as there will always be growth in them, with one billion people coming into the middle-class in the near future,” says Şener.
TAV has previously centred its expansion on airports within the old Ottoman Empire in the likes of Macedonia, Croatia, Georgia, and Turkey, where the culture was similar, but is now ready to take the next step. “We are ready to be a global company in airport operations," says Şener. " We are focusing on South East Asia, and have a big chance to go to other regions now."
Other tenders in Saudi Arabia will also come up - a market where TAV already operates Medina, while India remains on its radar. “In India we tendered for New Delhi, but missed out. We do though still have a big vision in India to tender for airport concessions,” says Şener.
TAV has also put a tender for New York’s La Guardia Airport, and is waiting to see if it wins the bid, as it looks further afield. The Turkish operator’s newest investment is the acquisition of a 40 per cent stake in Istanbul Sabiha Gökçen International Airport. TAV will have equal rights with fellow owner Malaysia Airport, and it will give the Turkish operator a continued firm foothold in Istanbul, and part of a new strategy.
A new gateway is set to be built by the end of the decade in Istanbul, and TAV only has until 2021 to run Istanbul Atakurk, before it will be shut down to make way for the new mega-hub. “We need to have a shareholding in Istanbul, which is why we made the acquisition. Istanbul is very important to us. Once the new airport is opened, Sabiha Gökçen will be the nearest to the centre, so it can compete with the new airport,” says Şener.
Şener says a €10 billion investment will be made, and a new runway built by 2025, and TAV has big plans for Sabiha Gökçen. “Airside has not been used very efficiently, so we have big challenges to use it more efficiently,” he explains.
He adds the new concession that was on the table for the new hub to be built was “too expensive so TAV walked away”, while air traffic growth in Istanbul and Turkey as a whole is “tremendous”. As for the future of the aviation industry Şener is clear it will be driven by point-to-point flights operated on fuel- efficient aircraft such as the Dreamliner, while airport developments are best through public-private partnerships (PPPs).
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