YAKUP SAYAR / UĞUR YILMAZ

STOCK EXCHANGE / FINANCE SERVICE

Caption: Çelebi Aviation found its CEO in Asia, the centre of the world’s economic growth, in the last quarter of 2014. Dutch national Onno Boots has given his first interview to Dünya newspaper and disclosed its five-year growth plans.

“Our businesses grew both in Turkey and Europe in 2014. We have settled down in India, our second market, strongly and solidly. The next step for Çelebi is to become a global brand. Our first target as Çelebi is to grow in countries neighbouring Turkey, the Middle East and beyond. In the following period, we plan to grow beyond India and reach Asia,” said Onno Boots, CEO of Çelebi Aviation Holding. Noting that the company plans to have a balanced portfolio, Boots recently said half of business is in Turkey and the other half is in foreign markets.

Boots took the helm at Çelebi Aviation Holding in the last quarter of 2014. He previously worked as a high level manager for the world’s leading logistic and aviation companies in the Asia Pacific region for many years. He last worked as CEO at TNT in charge of the Asia Pacific Region. Boots, who is from the Netherlands, said Çelebi, has a strong European centre in Frankfurt. The company also seeks to establish a strong hub, which will include the Middle East with a third Airport to be built in Istanbul. Boots said: “We can undertake a very big portion of the world trade by setting up a centre in Asia. A big portion of the production in the world is in Asia. That’s why supply-chains usually start in Asia. Consequently, you will need a centre in Asia. We are scouring mainly northern Asia for ours. But it could also be in Southeast Asia. We will not decide on a specific country, but in line with the density of commerce flow and how Çelebi will be positioned.”

He stressed that Çelebi will be a global Turkish brand and said the growth strategy consists of three main parts which includes actively using an acquisition option in the five-year plan.

Boots said growth of 15 per cent is targeted this year. In reference to the source of this growth figure, Boots said the Turkish market grew nearly 10 per cent, and the Indian market grew nearly 30-35 per cent. Thanks to these growth figures, they [Çelebi] will grow 15 per cent, Boots predicted and said Çelebi would seek a volume of USD800 million in turnover.

Details of three-part, five-year plan

Boots said Çelebi’s main strategy is to become a global brand consisting of three major parts.

“We want to grow on an organic basis, we want to grow regionally and on the basis of services” said Boots.

“Recently, we have been searching for ways to grow on an organic basis. We are dealing with a profitable business so we are searching for ways to make our company more profitable. We are looking for ways to use our income to develop Çelebi globally. We want to grow inorganically and through acquisitions to reach our long term targets.”

Concerning details, Boots said: “We have to focus on cargo. This is an area that is profitable and open to growth. Çelebi should reach a stronger position in cargo business globally. The second step of our strategy is how efficiently and productively we can reach our targets. Firstly, we should continue our focus on quality. Also, we should renew our outdated equipment. We will also increase our IT investments and efficiency. Our third step is our labour force. Our target here is to make Çelebi one of the most desirable companies to work for as an employee.  We want to work with the best figures in the market. We will pursue them, make them join our company and improve them. Thanks to the high quality of employees, our successes will be sustainable. ”

It will look for USD50 million in company acquisitions

Concerning targets on acquisition opportunities, Boots said they are looking primarily for opportunities in Turkey, adding, “We can also consider feasible acquisition opportunities outside this region, if any.”

Boots: said: “We plan to purchase relatively smaller companies. We can purchase companies with a volume of around USD50 million. We have an ideal company to finance such acquisitions. Çelebi has both family and funds partnerships. There are both entrepreneurs and financers between the partners. Consequently we have a combination. This position can be key to success.”

India is second biggest market

Seeking opportunities in Asia-Pacific

Drawing attention to the fact that their biggest market is India after Turkey, Boots said: “India is a very rapidly growing market. We undertake a big part of international passenger traffic in the country. We want to have a place in two or three new international regions in India. We still seek to grow in the country. We also know that there are big opportunities in the Asia-Pacific region.”

Iran is on his horizon, but there no plans to invest there in short term

Assessing the impact of developments in Iran on the aviation sector, Boots said: “We can make acquisitions, if we see an opportunity in this country in line with our acquisition strategy. Also, due to the structure of the region, privatizations also create good opportunities. But you are on limited ground for managing your business at a certain quality level. Consequently, we are not thinking of investing in Iran in the short term.”

THERE IS A NATURAL ‘HEDGE’ MECHANISM

Commenting on fluctuations on financial markets, Boots said: “We continue our business with different currencies in various countries throughout the world. That’s why, we have a natural hedge mechanism to balance our risks.”

Drawing attention to predictions that the Turkish economy will grow around 3 per cent this year, Boots stressed that this figure would mean two or three-fold faster growth than many European countries in today’s market conditions. “Depending on your point of view, the glass is half full or half empty. I see a half full glass. Three per cent is a very good figure. When I look at Turkey as a foreigner, I see a country capable of resisting. Turkey deals with economic fluctuations much better.”

EVERYONE SHOULD WORK TOGETHER FOR THIRD AIRPORT

Boots emphasized that the third airport should not be regarded solely as an airport and as a project to create traffic. “Although it is a small country, Singapore managed to establish the biggest centre for passenger and cargo transportation in Asia. If they can do it, Turkey can do the same as well. This should be the joint target. All parties in the country, ministries, airport authorities, cargo companies should act in unison to make a third airport the main centre of passenger and cargo transportation.”

WHEN YOU SAY HOMELAND, HE RECALLS HIS WIFE’S HOMELAND

The most important factor for Boots to join Çelebi was the possibility of working in a different and promising sector. When we said “homeland”, Boots immediately said Singapore, as this is his wife’s native land. He lived in Singapore for the last 16 years and worked in many acquisition and merger projects there.

Boots worked as an advisor to companies who plan to invest in Asia, and mediated to establish their networks, supply-chains and transport networks. When Çelebi asked if he would go to Turkey, Boots did not find it easy to leave his position as TNT CEO in Asia Pacific region. “A 25-year career in a company means that you can do whatever you want,” said Boots. “I thought I could take a new initiative by continuing my career for another 10 years.  It was a major source of attraction for me to work here in a different country, experience a different culture, work in a different sector, and work in a promising growth sector. Nine months ago, if someone had told me that I would be working in Turkey, I would probably have laughed because I had not planned that at all. But I love it here. I have been here for six months and I already feel at home.”