by Josh Lew
Last updated: 11:15 PM ET, Tue June 28, 2016
Photo courtesy of Thinkstock
The bombing at Istanbul's Ataturk Airport will further damage Turkey's already suffering tourism industry and hurt the expansion plans for the country's flag carrier, Turkish Airlines.
Tourism troubles
Turkish has been pushing forward with a plan to expand its capacity even as the country's tourism numbers drop. The recent attack at Istanbul's hub is the latest in a string of bombings and terror attacks that have plagued the country and kept tourists away in greater and greater numbers. A diplomatic row with Russia has further hurt the country's tourism industry.
The number of tourism arrivals fell by 35 percent in May compared to the same month last year. Since the latest bombing hit the main entry point into the country, that number is expected to fall even further in the coming months.
Still, though, the strategy of Turkish Airlines to focus on transit passengers will undoubtedly inspire comparisons with Emirates and its Gulf peers. These airlines rely heavily on transit passengers as well, but the the UAE is not suffering the same image problems as Turkey at the moment. Since the conflicts in neighboring Iraq and Syria show no signs of stopping and the Kurdish rebellion inside the country's borders is still simmering, that image is not likely to change anytime soon.
Late to the game
Turkish was relatively late to the transit passenger game. It has been successful in improving its image and its level of service, but if it wants a bigger share of the market, it will have to somehow differentiate itself from Emirates and its peers, who are among the best and most well-funded airlines in the world. So even without the recent drop in tourism numbers brought on by the string of terror attacks, the airline would have the odds of long-term success stacked against it.
Investors and fliers will now be watching to see if Turkish Airlines finally pulls back on its ambitious expansion plans and waits until Istanbul New Airport goes online before ramping up capacity again.
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