Airline business model innovations and their effects on company value for airline sustainability: event study on Turkish Airlines

In 2017 and 2018, Turkish Airlines (THY) expanded its business area by establishing three new companies with different areas of activities. In this study, the aim is to define business models of the airlines and evaluate the effects of Turkish Airlines innovations on its stock prices and market value using the event study method. Daily stock returns of THY in an event window, which is based on establishment statements of three new companies is examined and abnormal returns are found to see the effects of new companies on THY's market value. The results showed that, THY stocks only responded significantly to the statement about the establishment of the airport real estate investment company. From this situation it is understood that the event study method alone is not sufficient for that kind of research. However, changes in stock prices may not be solely the result of an event or statement.