The analysis should help to understand the consequences of Covid-19 more precisely. Our research and elaboration also aim at analyzing the post-Corona period and draw conclusions for the airline industry. The pursuit of knowledge is our team motivation here.
In January 2020, the novel Corona Virus began to spread across the People's Republic of China with its starting point in Wuhan, China. On March 11, 2020, Turkey confirmed the first Covid-19 infection and the World Health Organization officially characterizes Covid-19 as a pandemic. Mid of May, the number of cases reached more than 140,000 confirmed infections in Turkey. Nearly all economies and industries worldwide are confronted with major negative consequences of the pandemic until today.
Table of Contents
1. Introduction
1.1 Motivation and Relevance
1.2 Objective
1.3 Structure
1.4 Limitations
2. Comparison of the Turkish and German Economy in the Corona Pandemic
2.1 Analysis of the German and Turkish Economy before and amid the Covid-19 Crisis
2.1.1. Turkish Economy
2.1.2 German Economy
2.2 Comparison and Evaluation of the Turkish and German Economy in the Context of the Corona Crisis
3. Turkish Airlines and Lufthansa
3.1 Turkish Airlines
3.2 Lufthansa
4. Challenges for Airlines in the current Situation – Turkish Airlines & Lufthansa
4.1 Influencing Factors
4.2 Short-term Impact of the Pandemic and Challenges for the Airline Sector
4.3 Long-term Impact of the Pandemic and Challenges for the Airline Sector
4.4 Evaluation and Conclusion
5. KPIs of Turkish Airlines in Comparison with Lufthansa
5.1 KPIs and their Significance
5.2 KPIs of Turkish Airlines
5.2.1. Revenue and Revenue Potential
5.2.2. Profitability
5.2.3. Cash Flow
5.2.4. Liquidity
5.2.5. Capital Structure and Asset Utilization
5.2.6. Investment Performance
5.2.7. Safety and Traffic
5.3. Comparison of KPIs – Turkish Airlines & Lufthansa Group
5.3.1. Revenue and Revenue Potential
5.3.2. Profitability
5.3.3. Cash Flow
5.3.4. Liquidity
5.3.5. Capital Structure and Asset Utilization
5.3.6. Investment Performance
5.3.7. Safety and Traffic
6. Evaluation of the Financing Options for Turkish Airlines
6.1. Previous Liquidity Sources
6.2. Evaluation of Financing Options
6.2.1. Capital Raise - Domestically
6.2.2. Capital Raise - Globally
6.3. Chosing the right Financing Measure
7. New Flight Connection between Istanbul and another City after the Corona Crisis
7.1. Higher Probability of a global Virus – Defining new Criteria
7.2. Decision-Making
Objectives and Topics
The primary aim of this research paper is to evaluate the impact of the Covid-19 pandemic on the Turkish economy and, specifically, the airline Turkish Airlines. By conducting a comparative analysis against the Lufthansa Group, the study seeks to determine the financial and economic resilience of both entities under crisis conditions, while also exploring potential financing strategies and new expansion routes post-pandemic.
- Macroeconomic analysis of the Turkish and German economies during Covid-19.
- Strategic comparative performance review of Turkish Airlines and Lufthansa.
- Analysis of key performance indicators (KPIs) across financial, traffic, and liquidity sectors.
- Evaluation of future-oriented financing options for Turkish Airlines.
- Conceptualization of criteria for new flight destinations under pandemic-related constraints.
Excerpt from the Book
1.1 Motivation and Relevance
In January 2020, the novel Corona Virus began to spread across the People's Republic of China with its starting point in Wuhan, China (World Health Organisation, 2020). On March 11, 2020, Turkey confirmed the first Covid-19 infection (Herdem, 2020) and the World Health Organization officially characterizes Covid-19 as a pandemic (World Health Organisation, 2020). Mid of May, the number of cases reached more than 140,000 confirmed infections in Turkey. Nearly all economies and industries worldwide are confronted with major negative consequences of the pandemic until today.
The analysis should help to understand the consequences of Covid-19 more precisely. Our research and elaboration also aim at analyzing the post-Corona period and draw conclusions for the airline industry. The pursuit of knowledge is our team motivation here.
Summary of Chapters
1. Introduction: This chapter introduces the context of the Covid-19 pandemic and outlines the specific objectives and structure of the research study.
2. Comparison of the Turkish and German Economy in the Corona Pandemic: This chapter analyzes the economic landscapes of Turkey and Germany, evaluating pre-crisis conditions and the specific vulnerabilities exposed by the pandemic.
3. Turkish Airlines and Lufthansa: This section provides a company overview of both Turkish Airlines and Lufthansa, establishing the basis for their comparative analysis.
4. Challenges for Airlines in the current Situation – Turkish Airlines & Lufthansa: This chapter investigates the short-term and long-term impacts of the pandemic on airline operations, sustainability, and market stability.
5. KPIs of Turkish Airlines in Comparison with Lufthansa: This analytical core evaluates both companies using revenue, profitability, liquidity, and asset utilization KPIs to assess operational performance.
6. Evaluation of the Financing Options for Turkish Airlines: This chapter analyzes potential strategies for capital acquisition, including domestic and global raises, as well as alternative financing routes.
7. New Flight Connection between Istanbul and another City after the Corona Crisis: The final chapter proposes new criteria for selecting future flight destinations and conducts a case study on potential new routes.
Keywords
Covid-19, Turkish Airlines, Lufthansa, Airline Industry, Finance, Key Performance Indicators, Macroeconomics, Turkey, Germany, Crisis Management, Liquidity, Debt-to-Equity, Profitability, Pandemic Impact, Economic Recovery
Frequently Asked Questions
What is the core focus of this research paper?
The paper focuses on evaluating the economic and financial impact of the Covid-19 pandemic on Turkish Airlines and comparing its performance against the German Lufthansa Group.
What are the primary fields of analysis?
The study examines macroeconomic indicators, corporate financial data, operational KPIs, and strategic flight route management within the global aviation context.
What is the fundamental research goal?
The goal is to analyze resilience during the pandemic and identify viable financing mechanisms and expansion criteria for new flight routes for Turkish Airlines.
Which scientific methodology is applied?
The study uses a comparative performance analysis based on quantitative data (KPIs) sourced from shareholder reports and general economic data (GDP, inflation, unemployment).
What topics are discussed in the main chapters?
The main chapters cover the economic background of Turkey and Germany, detailed company profiles, comparative financial ratio analysis, and strategic recommendations for crisis navigation.
Which keywords define this work?
Key concepts include liquidity, profitability, financing options, the Covid-19 crisis, and corporate financial structure.
How is the current financial state of Turkish Airlines described?
Turkish Airlines faces pressure on its liquidity buffers and must manage the burden of new aircraft orders while coping with significant revenue losses due to the pandemic.
Why is the choice of new flight routes for Turkish Airlines challenging?
Selecting new routes requires balancing destination hygiene standards, passenger volume, and flight duration to ensure financial viability while minimizing contagion risk.
Are shareholders expected to benefit in the near future?
Due to the economic crisis and the conversion of currency rates, investor performance for Turkish Airlines has been negative, and no dividends have been announced as of the publication date.
- Quote paper
- Adrian Leander (Author), 2020, The Financial Situation of Turkish Airlines and Lufthansa. COVID-Crisis 2020, Munich, GRIN Verlag, https://www.grin.com/document/1362163
