Aviation Turkey: How is this year's Riga Aviation Forum going for you?

Serkan Kaptan: It's going well. We have around 400 participants this year. We've been sponsoring this forum from the start, with both our team and service companies present. Interest has grown each year. As you've seen, it's not only regional aviation companies and airports attending but also major organizations like ICAO, IATA, ACI, and Eurocontrol, as well as companies like Airbus, who come to share their insights. We organize this forum in collaboration with Riga Airport, the airport authority, and it continues to attract more interest each year.

Aviation Turkey: You've been active in Riga for nearly 15 years. Could you tell us about your activities here?

Serkan Kaptan: We began ground handling services here with Havaş in 2010, so we've been providing these services for 15 years now. Ground handling is provided by two companies—the airport's own service and Havaş. As TAV Airports, we will soon mark our 14th year in Riga as of January 1, 2011. We manage all commercial areas within the terminal, including duty-free shops, food and beverage outlets, lounges, and other leased spaces. Our group companies, ATÜ-BTA are also part of this.

Additionally, our subsidiary TAV Technologies has implemented the AODB (Airport Operational Database) and A-CDM (Airport Collaborative Decision Making) systems for the airport. Through a separate agreement between Riga Airport and TAV Technologies, our technology company continues to provide service support in Riga.

 Aviation Turkey: How did TAV Airports perform in the first three quarters of 2024?

Serkan Kaptan: We'll be announcing the results after our upcoming board meeting. In general, passenger traffic growth has continued across all our airports. We see the positive impact at all our airports.

Our financial results have also been strong. Our new airport in Almaty is performing exceptionally well. We completed our investment there and opened the new terminal on June 1, 2024, with all remaining work expected to be finalized by year-end. 

We've made a significant investment in Antalya Airport, where all developments are set to be completed by the first quarter of next year. We're doubling the capacity of both the domestic and international terminals, ensuring Antalya is fully ready for the 2025 tourism season. Major infrastructure investments have also been made on behalf of the State Airports Authority. 

Our investments continue at Ankara Esenboğa Airport as well, including upgrades to the runway, taxiways, apron, and access roads. Additional projects, like a new Air Traffic Control Tower and aircraft hangar for the State Airports Authority, are also underway. These, too, are on track to be completed by the first quarter of next year. By the end of 2024 and into the first quarter of 2025, we will have completed our three major projects in Almaty, Ankara, and Antalya. 

 Aviation Turkey: Is there a renovation plan for the domestic and international terminals at Ankara Airport?

Serkan Kaptan: The international terminal at Ankara Airport is growing rapidly. This winter, we'll begin renovating the international terminal. All passenger flow areas, including duty-free shops and food and beverage outlets, will be updated. We plan to start during the low season, with everything ready in time for the next high season.

Aviation Turkey: What is the size of these investments?

Serkan Kaptan: The first phase of Antalya Airport involves an investment of €750 million, while the first phase at Ankara Airport includes an investment of €200 million, with €300 million planned in total. In Kazakhstan, a $200 million investment has been made, which will be fully completed in the next 3–4 months.

In the coming period, we have a planned investment in Medina, which we expect to start before the end of the year. Once these investments are realized, we will be able to focus more on operations.

Aviation Turkey: So, to what extent did these investments contribute to the growth of the TAV?

Serkan Kaptan: With the Almaty, Ankara, and Antalya airports, our concession period has been extended to around 30 years. We manage airports through lease agreements, with Almaty being the only property we fully own. The additional 25-year operating period for Antalya and Ankara brings our total operating period to nearly 30 years, which is significant for both investors and shareholders, as it supports the company's long-term, sustainable growth and stability.

It's important to view this as more than just airport operations. We also operate service companies that manage duty-free areas, food and beverage outlets, lounges, IT, security, and ground handling services. TAV continues to grow not only in airport management but also in the broader services sector.

 Aviation Turkey: You are aiming to increase your EBITDA to around €500 million by 2025. How do you plan to achieve this, and what will drive this profitability growth?

Serkan Kaptan: We're only seeing a half-year impact from Almaty this year, given that the new terminal became operational in June. Antalya's new domestic and international terminals will be operational next year, and the increased traffic, along with additional revenue from new commercial enterprises, will undoubtedly boost our revenue. With rising passenger traffic at other airports, we're continually making upgrades. Airports require constant nurturing, much like a baby. We're consistently enhancing passenger services and commercial areas, which, in turn, will increase per-passenger spending.

We're also expanding our parking facilities. To reduce costs, we're investing significantly in solar energy. By April 2025, our solar energy projects will go live at three of our airports: Ankara, İzmir, and Bodrum.

 Aviation Turkey: Have you selected these airports as pilot locations?

Serkan Kaptan: Yes, these airports were chosen as pilot locations. We started in Türkiye and will be testing their efficiency this year. Afterward, we plan to extend these investments to other airports under our management.

 Aviation Turkey: Apart from energy investments, what is your overall strategy for sustainability?

Serkan Kaptan: Our approach to sustainability goes beyond energy and carbon; we take a holistic view that includes operational sustainability and employee satisfaction. From an environmental perspective, all our new investments are rigorously certified, either as LEED Gold or EDGE Advanced—globally recognized standards that are also accepted by creditors. We work with institutions like the IFC, EBRD, and the Asian Development Bank, which are part of the World Bank Group. Their strict standards, frankly, work to our advantage as we leverage these requirements to minimize environmental impact.

In the regions where we operate, our goal isn't just to build airports, generate revenue, or pay rent to the government. We aim to enhance the quality of life for local communities and continually seek ways to contribute to sustainability in these areas.

Aviation Turkey: You successfully operate 15 airports in eight countries. What are your goals for further expanding and strengthening your presence in different regions abroad? Can we expect any new developments in the near future?

Serkan Kaptan: We're always focused on growth. Through our service companies, we provide services to 110 airports in 30 countries. In terms of airport management, we operate 15 airports in eight countries. In some locations, we manage lounges; in others, we offer technology services; and at some airports, we operate duty-free shops or provide food and beverage services. This broad presence across different regions allows us to experience diverse airports, countries, and cultures and helps us identify new opportunities.

Currently, we're following two tenders for airport operations. One is for the Podgorica and Tivat airports in Montenegro. The pre-qualification process for these was completed before the pandemic, but changes in government significantly extended the timeline. We expect the tender to proceed by the end of this year or early next year, and we're one of the three qualified companies. Similarly, there's a tender in Kuwait, where three companies, including us, are competing. We anticipate a final decision on this by year-end.

 Aviation Turkey: The extension of the Macedonia contract had been on the public agenda. Could you tell us more about this?

Serkan Kaptan: We have a 20-year concession in Macedonia, with eight years remaining. Traffic is growing rapidly there, as it is across the entire Balkan region. As you know, we also operate at Zagreb Airport in Croatia. In Macedonia, we're exploring possibilities for new investments in exchange for future opportunities, but with eight years still left on the concession, there are currently no plans for a new tender or extension. The airport undergoes regular upgrades, maintenance, and renovations to accommodate passenger traffic.

Aviation Turkey: As you mentioned, TAV Technologies plays a significant role in your operations. Could you update us on the latest developments in your smart airport initiatives?

Serkan Kaptan: We initially used our own airports as pilot locations to test these technologies. At the time, Istanbul Atatürk Airport was our largest hub, where we experimented with many solutions. As these projects proved successful, we began exporting our products. Today, beyond the airports we operate in Türkiye, TAV Technologies' products are used across a vast geographic region—from state-owned airports within Türkiye to locations as far as Panama, Mexico, Chile, South Africa, Riga in Latvia, and Thailand. Their offerings encompass a wide range of applications, from check-in and personnel management software to specialized systems like Airport Operational Databases (AODB) and Airport Collaborative Decision Making (A-CDM) projects.

Since TAV Technologies focuses exclusively on airports, it has the capability to develop all types of software needed within an airport environment. Initially established as an internal department, it has since become a fully institutionalized company, now offering services externally. TAV Technologies has reached €120 million in revenue and continues to grow rapidly. Technology is a vital tool we rely on to streamline operations in future airports and minimize human error.

 Aviation Turkey: What is your perspective on AI technologies?

Serkan Kaptan:  We use AI across various areas to enhance both passenger comfort and security. Now that the cameras are also smart, whether for density measurement or passenger security, we're exploring ways to maximize the benefits within our security systems by fostering collaboration between TAV Security and TAV Technologies. In passenger services, our team also develops software for check-in and ground handling, fully integrated into the airport system. The ability to connect and integrate different systems is crucial, and having our own technology company provides us with a distinct advantage in this area.

Aviation Turkey: Additionally, we'd also like to hear a bit about your role with Airports Council International (ACI).

Serkan Kaptan: I've been a board member of ACI Europe for three years, representing both our region and TAV as an airport operator. ACI makes a significant impact on the aviation industry through its statistical insights and lobbying efforts across Europe. Being part of ACI Europe allows us to exchange knowledge with aviation leaders, which brings valuable know-how back to our company. It's not about personal gain; by representing TAV, I gain insights and share our expertise. We contribute our understanding of emerging markets while benefiting from their experience in developed markets—ultimately, a win-win for the group. I believe we're making a positive impact on the aviation industry as well.

Aviation Turkey: Lastly, is there a final message you'd like to share with our readers?

Serkan Kaptan: Frankly, we're seeing rapid growth worldwide in the post-pandemic era, especially in the regions where we operate. TAV is quite selective in this regard, typically focusing on countries with growing or emerging economies. Our key regions include Eastern Europe, North Africa, Central Asia, the Middle East, and surrounding areas in Türkiye. All of these regions are experiencing fast growth, and with that comes increased demand. As a group, we believe we're well-positioned to respond quickly to these needs.

Aviation Turkey: Thank you very much for your time