Pegasus' 44 aircraft financed through state incentives

Pegasus, one of Turkey's largest airline companies, has purchased 100 new passenger aircraft with the help of state incentives. Tax breaks and state support played a critical role in the acquisition of the aircraft, which have a market value of approximately 167 billion lira (10 billion dollars). Within this scope, 44 aircraft were effectively acquired at no cost, while high-rate incentives were provided for the remaining aircraft.

FINANCING PROVIDED THROUGH TAX ADVANTAGES

According to a report by Uğur Zengin from Evrensel, Pegasus has generated a net profit of 34 billion lira over the last two years. A significant portion of the company's 100-aircraft investment was covered under the investment incentive program that went into effect in 2009 with Erdoğan's signature.

Under this incentive, an investment contribution incentive of 50 percent was set for 84 aircraft, and 15 percent for 16 aircraft. Thus, 44 aircraft with a market value of 4.4 billion dollars were entirely financed through tax advantages.

According to the calculations:

100 aircraft were purchased, each costing 100 million dollars. Total investment: 10 billion dollars.

A 15 percent incentive was provided for 16 aircraft: 1.6 billion dollars x 15% = 240 million dollars in incentives.

A 50 percent incentive was provided for 84 aircraft: 8.4 billion dollars x 50% = 4.2 billion dollars in incentives.

Total minimum incentive amount: 4.44 billion dollars.

ERDOĞAN'S REMARKS TO PEGASUS HAD DRAWN ATTENTION

At the opening of the runway at Sabiha Gökçen Airport at the end of 2023, President Erdoğan addressed Pegasus Airlines boss Ali Sabancı, asking, "Ali Bey, now the second runway has also been put into service. Look, Turkish Airlines is going to buy 300 aircraft, how many are you going to buy?"

Following these remarks, Pegasus signed a major order agreement for 200 aircraft with Boeing in December 2024. The statement indicated that 100 of the aircraft were firm orders, while the remaining 100 were in the evaluation stage.

The agreement Pegasus made with Boeing was realized within the scope of the investment incentive program put into effect in 2009 by Erdoğan and the then-Minister of Finance Mehmet Şimşek.

News Source: 12punto