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New Airline Credit Ratings Issued – Now Come Meet the CEO!

Looking for good business partners? Look no further than the AEA/MARPA Conference in Istanbul on May 25-26, 2015.

Our keynote speaker will be Dr. Temil Kotil, the CEO of Turkish Airlines, who will discuss how his airline has used PMAs as part of their safety strategy.  This is an excellent opportunity for PMA manufacturers to meet Dr. Kotil in an intimate atmosphere that is designed to foster networking and discussions of solutions like PMA.

A recent article in Turkish Weekly announced that Turkish Airlines has been awarded corporate family ratings of Ba1 (from Moody’s) and BB+ (from S&P).  By way of comparison, American Airlines was recently upgraded by Moody’s to a positive outlook, and at that time Moody’s confirmed a B1 rating for the corporate family.  Last fall, S&P upgraded Southwest Airlines from BBB- to BBB.  This shows that Turkish Airlines is situated well within the range of the finest airlines.

Rehan Akbar is Moody’s lead analyst for Turkish Airlines.  Akbar explained that “Our decision to assign a Ba1 CFR to Turkish Airlines balances the company’s healthy financial profile and role as the national carrier against the execution risks associated with its high-growth strategy.”  The Moody’s press release explained that “Turkish Airlines’ healthy financial profile is underpinned by its low-cost structure and historical above-peer-average profitability metrics. The airline has a well-diversified passenger revenue base that is supported by the economic and tourism growth seen in Turkey, while Istanbul’s geographic location allows the Ataturk International Airport to act as a hub for international transfer traffic. ”

What does this mean for PMA companies?   It means that Turkish Airlines is a serious airline that is recognized internationally for its profitability.  And part of what makes an airline like this successful are good business practices that ensure safety while providing good value that can be passed on to the traveling public.  PMAs are one of the solutions that the leading airlines are using to ensure that they remain safe and profitable.

This meeting is co-hosted by the Association of European Airlines (AEA), and they have confirmed that they expect significant airline attendance; so make sure your sales force attends!

I look forward to seeing all of MARPA’s members (and a few non-members) at the Istanbul meeting in May!

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About Jason Dickstein

Mr. Dickstein is the President of the Washington Aviation Group, a Washington, DC-based aviation law firm. He represents several aviation trade associations, including the Aviation Suppliers Association, the Aircraft Electronics Association, the Aircraft Fleet Recycling Association and the Modification and Replacement Parts Association.

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