As Istanbul builds a massive new airport and Turkish Airlines pursues aggressive route expansion, some in Turkey see the ban on large carry-on electronics on U.S. and Britain-bound flights as a ploy to undermine their aviation industry. The US and British decisions to forbid devices bigger than a cellphone in the cabin on flights from several Middle East and North African states could hit Istanbul particularly hard, after years building up its position as an international hub. More than half of international passengers at Turkish Airlines, which is 49% state-owned and serves 247 destinations outside Turkey, are transit customers who could instead travel through Europe or other hubs. Fast-growing Gulf airlines such as Emirates, Etihad and Qatar Airways, which similarly depend on business-class flyers stopping over in places like Dubai or Doha for far-flung destinations, could also be hit. For Turkey's national carrier, the setback comes as it prepares to relocate to a E10b third airport in Istanbul, billed by the developer as the world's largest and championed by President Tayyip Erdogan as a megaproject that will cement Turkey's global standing. "The biggest aim of the third airport was to use Istanbul as a hub. But if such security measures become permanent, this could reduce Istanbul's appeal," said Esra Sirinel, a deputy research director at Is Investment and an airline specialist. "They're afraid of THY (Turkish Airlines)," the Yeni Safak newspaper said in a front-page headline on Thursday, over a simulated image of the new airport glistening in the sun. It cast the move as a plot against Turkey's national carrier. "We need to stop THY," read the headline on fellow pro-government daily Aksam, which claimed U.S. carriers, facing stiff competition from Turkish Airlines and Gulf carriers, had lobbied for the move. A senior Turkish government official questioned the basis for the restrictions, saying airport security in Turkey was no worse than in Europe and that laptops or tablets could still be used to carry explosives even if they are put in the hold. "It appears this decision was made purely on commercial grounds, and it seems it was done to limit the advancements made by Turkish Airlines and by Turkey," the official said.<br/>
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Aegean reported a 53% drop in 2016 net profit Thursday, as a weak Q2 and higher value-added tax (VAT) outweighed a rise in sales beyond the E1b mark. Aegean Airlines said it made net earnings of E32.2m last year, down from 68.4m in 2015. Group sales grew 4% to E1.02b. The company, a member of the Star Alliance airline group, said passenger numbers grew 7% in 2016 to 12.5m, with its load factor - a measure of how full its planes are - improving by 0.6 percentage points to 77.4%. "A particularly weak second quarter and the increase of VAT tax by 11 (percentage) points had a negative impact on full-year results," CE Dimitris Gerogiannis said. "Adjustments to our network in the last quarter led to significantly higher load factors, especially on flights abroad, and the trend is continuing in early 2017," he said. Aegean, which flies a young fleet of 61 aircraft, mostly Airbus A320 jets, said its board would propose a dividend per share of 0.4 euros, down from 0.7 euros on 2015 results.<br/>