Turkish Airlines

Early years

Turkish Airlines was established on 20 May 1933 as Turkish State Airlines (Turkish: Devlet Hava Yolları) as a department of the Ministry of National Defense. The airline's initial fleet consisted of two five-seat Curtiss Kingbirds, two four-seat Junkers F 13s and one ten-seat Tupolev ANT-9. In 1935, the airline was turned over to the Ministry of Public Works and was subsequently renamed General Directorate of State Airlines. Three years later, in 1938, it became part of the Ministry of Transportation.

Postwar period

Several Douglas DC-3s and Douglas C-47s were phased in during 1945. Being initially set up as a domestic carrier, the airline commenced international services with the inauguration of Ankara–Istanbul–Athens flights in 1947; with the DC-3s and C-47s enabling the carrier to expand its network.

Nicosia, Beirut and Cairo were soon added to the airline's international flight destinations. However, domestic services remained the carrier's primary focus until the early 1960s.

In 1956, the Turkish government reorganized the airline under the name Türk Hava Yolları A.O. (often abbreviated as THY). It was capitalized at TRY 60 million. The airline joined the International Air Transport Association (IATA) shortly thereafter. In 1957, British Overseas Airways Corporation (BOAC) began supplying technical support after acquiring a 6.5 percent shareholding, which it held for about 20 years.

New aircraft, including Vickers Viscounts, Fokker F27s and Douglas DC-3s, were added to the fleet in the late 1950s and early 1960s. Turkish Airlines began operating its first jet, a McDonnell Douglas DC-9, in 1967. This was followed by the addition of three Boeing 707 jets in 1971. Other aircraft operated in the early 1970s included the McDonnell Douglas DC-10 and the Fokker F28, which were put into service in 1972 and 1973, respectively.

1980s and 1990s

The airline was plagued by several issues in the 1980s and 90s. It developed a reputation for poor service compared to competitors and flight delays, with 47 out of 100 flights not departing on time. It also endured hijackings and suffered seven accidents between 1974 and 1983. The most notorious was the 1974 crash of Turkish Airlines Flight 981, when an aircraft design flaw led to a faulty cargo door breaking off in flight near Ermenonville, France, resulting in the deaths of 346 people. At the time of the accident, THY981 was the worst plane crash of all time.

A new government came to power in 1983 which recognized THY's importance as Turkey's gateway to the world, beginning the airline's makeover into a modern operation. It would go on to maintain one of the youngest fleets in the world. Security was intensified, causing one shipper to compare it to Israel's El Al, at least in terms of delays.

THY built a new, state-of-the-art technical center at Yeşilköy Airport in 1984. The airline was capable of both light and heavy maintenance on many different aircraft types. The technical staff then made up one-quarter of the airline's 6,000 employees, according to Air Transport World. In 1984, the company's capital was raised to 60 billion TL as it was classified as a state economic enterprise. Three years later, the capital was raised again, to 150 billion TL.

By the mid-1980s, THY had a fleet of 30 aircraft. It was flying approximately three million passengers a year to 16 domestic destinations and three dozen international ones. The airline was Turkey's largest source of foreign currency. Turkish Airlines began operating Airbus A310s in 1985, allowing the addition of flights to Singapore in 1986. A route to New York City via Brussels was added in 1987.

The company posted losses in 1987 and 1988, largely due to high payments on its dozen new Airbus A310s, according to Air Transport World. The fleet also included 11 Boeing 727s and nine Douglas DC-9s. THY ended the decade with 8,500 employees.

The airline ordered five Airbus A340 aircraft with an option for five more in 1990 to be able to fly to North American and East Asian destinations non-stop. The first A340 was delivered three years later, in 1993.

The company suffered in the global aviation crisis following the Persian Gulf War and would not break even again until 1994. However, the business was again booming in the mid-1990s, with the greatest growth coming from North American destinations. THY launched a nonstop flight to New York City in July 1994.

The company's capital continued to be raised, reaching 10 trillion TL in 1995. During that year, the airline also converted three of its Boeing 727s to dedicated freighters. The DC-9s had been sold off. The company posted a $6 million profit on revenues of $1 billion for the year. While profitable, THY had to contend with Turkey's exorbitant inflation, making capital improvements difficult.

The domestic market was deregulated in 1996, allowing new scheduled competition from charter airlines. At the same time, larger international carriers were providing stiff competition on routes to Western Europe. THY entered into marketing agreements with other international airlines to enhance their competitiveness.