Turkish Airlines cuts staff and fleet

Passengers numbers are down after the attacks

Turkish Airlines will cut more than 1,000 staff and may halve its fleet after air traffic dropped 35.6% following the 11 September attacks on the US.

The measures are expected to save about $59m.

The company is due to be privatised as part of a $15.7bn International Monetary Fund economic package after the currency was devalued in February.

Turkish Airlines already planned to sell seven of its Airbus A310/300 aircraft by 2003, leaving it with 61 leased planes.

Staff slashed

The airline will lay off 335 temporary workers and not renew contracts of 450 part-time staff, it said in a statement to the Istanbul Stock Exchange.

Another 338 employees qualifying for retirement would also depart retrenched, the company said.

Passenger volumes on domestic flights have fallen 35.3% and international flights 21.6% percent due to the war in Afghanistan, the airline said in justifying the job losses.

Turkish Airlines shares ended up 3.8% at 5,500 lira on the Istanbul stock market after the announcement.