TAV plans to bid in Asia, Middle east and Africa

The Dollar Business Bureau

TAV, the Turkish airport operator is preparing to bid for new tenders in India, Indonesia, Vietnam and Malaysia in the next two years. TAV’s chief executive Sani Sener expressed that this move is aimed at increasing the push in the new markets.

Sener said that the TAV group is also interested in airports across the African countries where the passengers exceed one million and is also considering the privatization of airports in the Gulf.

In order to balance the impact from the end of its contract to run Ataturk airport of Istanbul, the company is very much keen to add its revenues from the service business.

Sener also revealed that they will be very active in Africa and South East Asia and will continue to be active in the Middle East. He emphasizes the fact that, they are a company from the emerging market and would always prefer the growth in the emerging markets.

Turkey’s new airport in Istanbul will start working by 2018, and the existing chief carrier is slated for closure in 2021.

TAV has lost its tender to a consortium that was led by Limak to operate its new airport. Due to this, TAV is in a position to find an alternate revenue option to replace its generator of main earnings.

Only 20 percent of the company’s revenue is generated outside Turkey. However, Sener said that the percentage of revenues from foreign operations will increase in the coming years.

The company is a part of the consortium that has received initial qualification to bid for tenders for a group of five airports in the Philippines.

Considering 50 airports with privatization potential, Turkey’s TAV is also hoping to bid for India deals. Other markets in the TAV’s agenda are the Middle East and Africa.

By helping build airports in Saudi Arabia, the UAE, Bahrain and Qatar, TAV has built a notable presence in the Middle East.

Madinah airport, Saudi Arabia’s first privatized airport is being operated by TAV. TAV is also planning for small tenders in the Gulf countries.

Many airports in this region are being operated by the government. However, many of these airports are expected to be privatized with a view to reducing the funding burden of the state caused by low oil prices.