Turkish Airlines eyes both airports in Istanbul
Turkish Airlines was rumored to be interested in acquiring a minority stake in the new Istanbul Airport. The company waited a day or two to deny the rumors, after the news hit its stocks. The company management was criticized for waiting such a long time before it formally made an announcement about the claims.
IGA consists of five construction companies: Cengiz, MAPA, Limak, Kolin and Kalyon, each holding equal stakes. Kolin sold its shares in the consortium to Kalyon last month. So the rumors came out during the transfer of shares between two consortium members.
However, Turkish Airlines is not only interested in buying shares from IGA, but also the other airport in Istanbul, Sabiha Gokcen on the Asian side of the city, according to people familiar with the matter.
Sabiha Gokcen Airport is operated by the Malaysian Airports Holding Bhd (MAH). To conduct both acquisitions would require over one billion dollars in financing, which could severely affect its share price. Even the rumors, last week, sent shockwaves in the market and its stock price went down significantly.
Turkish Airlines was also rumored to be interested in Terminal 1 of the JFK Airport in New York, according to a local press report in October 2018. Air France, Japan Airlines, Korean Air, and Lufthansa controls the Terminal and were mulling an overhaul.
IGA is expected to be among the largest airports in the world. It was founded on October 7, 2013 to construct and operate the new Istanbul Airport for 25 years. The airport is under construction on an area of 76.5 million square meters to the north of Istanbul, 35 km from the city center. The construction will be completed in four phases. The first phase was finalized when two runways and a terminal with a passenger capacity of 90 million were commissioned. Once complete, the airport will host flights to more than 300 destinations with an annual capacity of 200 million passengers.