By Ceyda Caglayan
ISTANBUL, Dec 20 (Reuters) - Turkey's low-cost carrier AJet, a wholly owned subsidiary of Turkish Airlines THYAO.IS, is in talks with lessors to procure 36 aircraft to keep its growth plans on track, following delays in Boeing BA.N deliveries, its chief executive said.
"We're in talks with lessors to provide 36 jets next year, with Airbus aircraft mainly in focus. We are looking to leasing and purchasing options," AJet CEO Kerem Sarp told Reuters.
Turkey's flag carrier Turkish Airlines spun off its low-cost sub-brand AnadoluJet last year, as part of a broader repositioning, and established a new company in a move to boost competitiveness and allow the airline to grow faster in the low-cost aviation arena.
Launching its flights in March under the new brand AJet, it is currently negotiating with lessors with Airbus models in focus, in order to achieve its 13% available seat per kilometer $(ASK.AU)$ growth and 23 million passenger targets for 2025, as deliveries of 36 MAX jets set for next year have been delayed, Sarp told Reuters.
"According to our 10-year strategic plan, we expect our fleet size to tap 200, up from current 86", AJet CEO Kerem Sarp said in an interview.
"In line with this target, we were expecting to be delivered 36 Boeing jets next year. But we are facing delays for the deliveries, due to problems at Boeing," Sarp added.
The aerospace manufacturer Boeing had faced production delays due to supply chain problems, safety concerns and a seven-week strike by factory workers.
In order to offset the delay, AJet is seeking to procure additional aircraft and the negotiations are ongoing with lessors, Sarp said.
Since March, AJet is expected to have carried a total 16 million passengers this year and targets 23 million for 2025, with some 70% traveling in domestic flights, the CEO said.
The carrier's domestic market is quite competitive even with government imposed price ceilings for local flights. The largest low-cost competitor Pegasus PGSUS.IS has also announced a recent order of up to 200 narrow body Boeing planes.
AJet's priority will be increasing the share of its international flights to over 50% from the current 30% to improve profitability, the CEO said, as it aims an average annual growth of 16% and 5-6% for international and domestic flights respectively in the 10-year period.
The low-cost carrier, which carries out its operations from its two bases Istanbul Sabiha Gokcen Airport and Ankara Esenboga Airport, is also planning to increase the number of its international destinations to 104 from the current 54; with Europe, North Africa and Middle East in focus.
(Reporting by Ceyda Caglayan; Editing by Ezgi Erkoyun and Chizu Nomiyama )
((Ceyda.Caglayan@thomsonreuters.com; +90-212-350 7061; Reuters Messaging: ceyda.caglayan.thomsonreuters.com@reuters.net/))
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