Ziya: Ercan Airport Privatisation Increased Airlines' Costs

Commenting on renewed calls for Ercan Airport to be incorporated into Turkey's domestic flight network, Ziya said, "I do not take this seriously in its current form."

He argued that domestic status would mean the absence of immigration and customs procedures and even the absence of registration requirements.

"That would mean this country becomes a place where anyone can enter without being questioned. Under the current status, such an arrangement is impossible. Domestic flight status and the application of domestic tax rates are two different concepts. It is not possible to implement this," he said.

Speaking on Kanal T's İnce Ayar programme, hosted by Damla Dabis, Ziya also argued that international examples frequently cited in public discussions could not be compared with the TRNC.

Referring to Transport Minister Erhan Arıklı's example of Batumi, Ziya said the arrangement there had been introduced because of the lack of sufficient airports in the eastern Black Sea region and was intended to provide residents with the quickest and easiest access to air transport.

"People choose Batumi because of convenience. It has absolutely nothing to do with ticket prices," he said.

He also dismissed Arıklı's reference to Geneva as an inappropriate comparison for the TRNC, adding that he did not believe a domestic flight arrangement would be implemented under current conditions.

"I do not believe the issue is serious. If, one day, an agreement is reached and a concrete model is put forward, then it can be evaluated," he said.

'Government Decisions Increased Costs'

Ziya said airline costs had increased following the privatisation of Ercan Airport.

He recalled that, previously, accommodation and ground handling charges for TRNC flights were not imposed at Turkish airports, while a 50 per cent discount had been applied in Northern Cyprus.

He said costs rose after these arrangements were abolished following privatisation and added that he had warned the relevant authorities in advance, but his concerns were ignored.

'We Are the Only Country That Charges VAT on Departure Tax'

Ziya also criticised the imposition of VAT on departure tax.

"We are the only country in the world that charges VAT on departure tax. This directly increases ticket costs. Under these conditions, expecting very low ticket prices is unrealistic," he said.

He added that airlines could not be expected to operate at a loss if ticket prices were determined through administrative decisions.

"The authority rests with the minister. He may refuse to grant flight permits if he wishes. But no company will undertake an operation that loses money. In such a situation, we would also suspend our flights," he said.

Reiterating his views on the domestic flight debate, Ziya said: "I do not believe this arrangement will be implemented. On the day I believe the issue is serious, I will go and discuss it."

Ziya also referred to efforts to establish a new national airline after the collapse of Cyprus Turkish Airlines.

He said Pegasus had submitted a bid after plans to privatise KTHY were announced and held discussions with then-finance ministers Ersin Tatar and Ersan Saner, as well as Türkay Tokel.

Ziya said Pegasus had not initially been interested in acquiring the company but eventually agreed, following government insistence, to establish a new airline under a 50-50 partnership between the state and Pegasus.

Under the agreement, Pegasus would cover the state's capital contribution during the first three years. Ziya said the proposal was submitted to the government and that then-minister Kemal Dürüst had announced in parliament that an agreement had been reached with Pegasus.

However, he said the process later changed and that, during a meeting with then-prime minister İrsen Küçük, Pegasus was asked to provide an additional $5 million.

When Pegasus refused the request, the agreement was cancelled and another company was subsequently selected.

"After everything that happened, how can we have confidence in the seriousness of the process?" Ziya said.