New code exempts THY from customs

ISTANBUL- Hürriyet Daily News

Turkish Airlines is to be exempted from custom duties on its plane purchasing from abroad, according to a recent change in the law. DHA photo

Turkish Airlines, which signed major plane purchase deals this year, will be exempted from the customs duties on its new purchases thanks to a recent change in the law.

Turkey’s national carrier, Turkish Airlines (THY), will no longer need to pay tax when buying planes from abroad, according to a bill from the Parliamentary Planning and Budget Commission passed by the General Assembly of the Turkish Parliament.

The privilege will affect THY’s competitive power in the domestic market, which has witnessed fierce competition with the rising success of private air carriers, in particular Pegasus Airlines, which has gained a substantial market share in recent years.

THY has been undertaking large-scale purchases and the latest reports indicate that the company has now agreed to purchase 117 planes from French aircraft manufacturer Airbus.

The company’s fleet size reached 202 planes last year, and this total will rise to 375 by 2020 with these new orders.

Last October it ordered 15 jet airliners from Airbus’ U.S. rival, Boeing, in a deal worth $4.7 billion, and 15 long-range jets from Airbus valued at $3.5 billion.

Pegasus Airlines also ordered Airbus jets worth $12 billion in an agreement reached last December, ordering a total of 100 new jets.