A Transformation Story: Thy

From (T)hey (H)ate (Y)ou to “Best Airline” of Europe: The Transformation Story of Turkish Airlines

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The Near History

Until the mid 1980s, then-state-owned carrier ranked among the least prestigious members of the global aviation industry. A poor safety record, frequently delayed flights and unmotivated personnel were known to everyone. The primary international function was to transport Turkish workers to and from Europe and the Middle East.

The revitalization of THY stepped up in 1988, when visionary Turkish Prime Minister Turgut Ozal[1] assigned Dr. Cem Kozlu to the top of THY. Ozal’s vision of economic liberalization, market oriented policies and opening strategy after the dissolution of Soviet Union, prepared the ground for Kozlu to transform the state owned enterprise.

From Olive Oil to Aviation

Holding an MBA from Stanford University, Kozlu brought his management and marketing expertise to THY. He held several executive positions abroad and at the time of the offer, he was managing a Turkish olive oil company, which successfully opened to international markets. When Ozal offered him to take over as chairman of THY, he had no knowledge of the aviation industry.

How did he gain the respect of even old-liners in the airline’s hierarchy, who initially reacted to the appointment of an “outsider”?

“My approach is to identify a limited number of goals, strategic and tactical, and then take the necessary measures to achieve them”, Kozlu told. With his bald and hands on management style, which differs sharply from that of a bureaucratic, slow and complex systems of “state enterprise”, he believed in communication with staff at all levels. He was committed to placing the customer focus at the center of the company culture and all operations to be more innovative and competitive, which significantly lacked in a state enterprise.

Between 1988 and 1991, THY joint ventured in Sun Express with Lufthansa, inked co-operation agreements with...