IMPACT OF STATE’S POLITICAL STABILITY ON COMPANY’S ECONOMY— CASE STUDY OF PEGASUS AIRLINES

There is a reciprocal relationship between air travel and a tourist destination. An existing airline connection is a prerequisite for visiting an area by foreign tourists and thus for the development of tourism. On the other hand, the popularity of a tourist area creates the preconditions for the further development of flight routes to other destinations. Unstable political situation prevailing in the region can harm the whole economy. Among others, the aviation industry will be hit, because there is a dependence between air transportation growth and Gross domestic product (GDP), the aviation strongly correlates with the economic cycle. On the example of Turkey the improvement in the political situation can be seen reflected in the results of the Pegasus Airlines. Financial results of two consecutive years were compared and interpreted. At the same time other circumstances that could have contributed to the results were investigated. At the end of the discussion attention was drawn to new circumstances that could further destabilize the situation in Turkey and the whole region and negatively affect the further development of the Turkish aviation.