Istanbul Jet Deputy Chairman and General Manager Hüseyin Latifoğlu said that they plan to carry their growth targets in the sector to the Balkans after the company’s 5 million euro new fuel storage facility investment in Dalaman.
Latifoğlu shared with journalists the details about the new fuel storage facility built by Istanbul Jet in Dalaman with an investment of approximately 5 million euros.
Stating that the company currently has a storage facility in Gazipaşa and that the other storage facility at Antalya Airport was removed due to renovation works, Latifoğlu said that this warehouse is planned to be reopened after the work at the airport.
Latifoğlu stated that airports with a high number of international flights are attractive for investment and said, “Dalaman’s hinterland is much larger. 47 percent of international flights to Turkey are from Istanbul, 24 percent from Antalya, 15 percent from Sabiha Gökçen, 10 percent from “3 percent are to Dalaman and 1 percent to Bodrum. Dalaman Airport is used for Marmaris, Datça, Fethiye and Kaş.” shared his knowledge.
Stating that EasyJet, one of the largest companies flying to Turkey, operates three times more flights to Dalaman than Bodrum, Latifoğlu said, “In addition, yacht tourism also affects investments. We work with 11-12 of the approximately 23 airline companies in Dalaman.” “Our biggest customer here is the British charter company Jet2, and it is one of our important customers, especially abroad.” he said.
Latifoğlu said, “We serve a total of 100 airline companies on domestic and international flights. We provide service at 150 points with private planes.” he said.
Noting that there is a total fuel volume of 160 thousand tons in Dalaman and that this is a rapidly growing airport, Latifoğlu continued as follows:
“The growth rate is around 10-15 percent. We predict that it will grow by 15 percent for five consecutive years. We aim to buy half of the fuel volume. This is approximately 100 thousand tons. Currently, we sell 50 thousand tons of fuel as an intermediary in Dalaman. We do this in two years.” “We estimate we can double that.”
Latifoğlu also shared the information that Turkey is one of the countries where there is no problem in the supply of Jet A1 fuel and said, “There was a huge supply problem in Europe in 2022. At this point, we need to give credit to Socar and Tüpraş refineries.” he said.
-“Jet fuel consumption in Turkish aviation is 6 million tons in total”
Stating that the Turkish aviation industry has overcome the stagnation during the epidemic period and returned to its “golden period” in 2019, Latifoğlu said, “Jet fuel consumption in Turkish aviation has now reached 6 million tons in total, but it is not possible to say this in terms of the global aviation industry. Europe is still far behind. Because Ukraine- “There are unused airspaces due to the Russian War. Therefore, Europe is 10-15 percent below.” made his assessment.
Latifoğlu also reminded that the pandemic period coincided with the opening of Istanbul Airport and said, “However, the activity of Istanbul Airport increased after 2021. 4 million of the 6 million tons of fuel is used at Istanbul Airport. Antalya Airport is in second place with 800-900 thousand tons. “Sabiha Gökçen Airport ranks third in jet fuel consumption, followed by Izmir, Ankara, Dalaman and Bodrum, respectively.” he said.
Making evaluations about the commercial activities of the company, Latifoğlu said, “Istanbul Jet’s 2023 turnover is 1.2 billion dollars. Profitability in this sector is low. We are ranked 118th in the Capital Magazine rankings in terms of turnover volumes in Turkey and 88th in the Fortune 500 Turkey rankings. The percentage of the business is “75 percent of the sales are in Turkey and 25 percent are abroad. We aim to change 50 percent of the portfolio to domestic sales and 50 percent to international sales.” he said.
Stating that, as a company, they want to establish a physical fuel storage facility in one of the Balkan countries, Latifoğlu said, “We are planning to establish a physical facility abroad. We are considering the Balkan countries that are close to Turkey’s geography. Turkey is a safer country. There is terrorism and conflicts in the surrounding countries. “This gives us a significant advantage. The fuel we sell is included in product exports because the fuel comes as crude oil, is processed and exported. Our sales from Turkey are considered exports.” he said.
Stating that the share of aviation fuel in Istanbul Jet’s total business model is around 90 percent, Latifoğlu stated that 6-7 percent is made up of land fuel and 3 percent is marine fuel.
