Connect with us

Business

TURKISH COMPANIES ARE ON THEIR WAY TO SECURE TRADE

Published

on

ÖZLEM ÖZÜNER

Euler Hermes Turkey CEO Özlem Özüner says, in an environment where global trade is expected to post growth of around 3%, “It’s now even more vital for Turkish companies to choose the right clients.

When foreigners visit Turkey, they praise us for our “bendensin” (it’s on me) attitude—we show them around, offer them an array of traditional meals, and when the check comes; we say “bendensin”, and do not let them pay. Turkish people do not split the check; one of them usually insists on paying—this is Turkish hospitality. While we are generous to our guests, we do also like to see exactly where our money is going. This explains why “insurance” is a concept that’s taking time to become widespread in Turkey: Insurance cannot actually be seen “in action” until something happens.

Insurance actually dates back to the Seljuk Turks. Subsequently, the Ottomans started to slowly adapt more Western, advanced and modern insurance models. After the disaster known as “The Big Beyoğlu Fire” that occurred in June 1870 in Istanbul, a total of 8,000 buildings perished. They were mostly residential and commercial buildings including a hotel, club, theater and the Italian Embassy, which were destroyed in the fire, along with many lives.

ÖZLEM ÖZÜNER

ÖZLEM ÖZÜNER

The tragic consequences of “The Big Beyoğlu Fire” led the Ottoman Empire to create a fire department. It was also the incident that tangibly showed the importance of insurance and helped it become widespread.

Today, Turkey is still trying to raise awareness on the benefits of insurance; and for protection of companies’ receivables, this means trade credit insurance. Having entered the Turkish market in 2010, Euler Hermes Turkey is one of the three major players in the market. As well as providing trade credit insurance products for Turkish companies, Euler Hermes Turkey takes on another vital role: informing the market about what credit insurance is and why it is necessary for many Turkish businesses.

Turkey’s position in the world and the economic performance of the country also point to a need for trade credit insurance. According to Euler Hermes’s latest global insolvencies report released in July 2014, the number of insolvencies around the world is expected to decline, yet there are challenges awaiting emerging markets: They must learn how to cope with slower GDP growth and increase the added value of goods they export.

Euler Hermes Turkey CEO Özlem Özüner stresses that Turkey is among “emerging markets that will face external headwinds in addition to slower growth due to changing business models.”

Özüner adds, “Turkey is a part of the East and Central Europe region. Even though insolvencies are expected to decline 2 percent in 2014 in the region, it’s now even more vital for Turkish companies to choose the right clients.”

This is where Euler Hermes Turkey comes in: They secure companies’ receivables in addition to helping them choose the right clients with the support of detailed, fresh global data and analysis. Today, Euler Hermes Turkey’s market share is 36.5 percent. As of July 2014, the company has insured 12 billion TL worth of trade receivables. Thanks to Euler Hermes’s global leadership in trade credit insurance and Euler Hermes Turkey’s leading role in creating awareness in Turkey, the company’s trade credit insurance premium growth in Turkey was at 40 percent at the close of July 2014.

Özüner says, “30-40 percent of a company’s assets are in the form of receivables. With the trade credit insurance product, we are insuring Turkish businesses’ receivables and giving them the advantage of focusing on their turnover growth without having to worry about non-payment.”

Turkish economy is reaching global standards in trade, which is reflected in the insurance sector’s performance. Within the first half of 2014, the premium production in the insurance sector increased by 5.75% when compared to the first half of the previous year and reached 13.269 billion TL. 11.713 billion of the premiums were produced by the non-life insurance sector, while the life insurance sector’s premium production was at 1.555 billion. Demand for insurance in Turkey continues to be high. Trade credit insurance is also taking its place in the sector and continues to grow rapidly. Alternative instruments including postdated checks, direct debiting by banks, and letters of guarantee were widely used in Turkey, which are now giving their place to trade credit insurance.

It is reassuring to see that more and more companies in Turkey are realizing the advantages of trade credit insurance. Their customers’ financial health and stability are important for companies of all sizes. The risk of insolvency and financial corruption cannot be ignored in a world where global trade is rapidly developing. Trade credit insurance plays an important role in controlling and securitizing risk.

As Euler Hermes Turkey, we are committed to helping more Turkish companies benefit from the advantages of trade credit insurance. We help our customers better manage their risk and plan their business activities efficiently. The Turkish government is also helping trade credit insurance become widespread in Turkey with new and revised regulations to help Turkish companies trade more securely.

[1] Kılıç, Prof. Dr. Abdurrahman, Büyük Beyoğlu Yangını,
http://www.yangin.org/dosyalar/buyuk_beyoglu_yangini.pdf

Business

Boeing, hit with $6.6 million FAA fine, faces much bigger 787 repair bill – sources

Published

on

Boeing, hit with $6.6 million FAA fine, faces much bigger 787 repair bill - sources 1

By Eric M. Johnson and David Shepardson

SEATTLE/WASHINGTON (Reuters) – Boeing Co will pay a $6.6 million to U.S. regulators as part of a settlement over quality and safety-oversight lapses going back years, a setback that comes as Boeing wrestles with repairs to flawed 787 Dreamliner jets that could dwarf the cost of the federal penalty.

Boeing is beginning painstaking repairs and forensic inspections to fix structural integrity flaws embedded deep inside at least 88 parked 787s built over the last year or so, a third industry source said.

The inspections and retrofits could take weeks or even up to a month per plane and are likely to cost hundreds of millions – if not billions – of dollars, depending to a large degree on the number of planes and defects involved, the person said.

The Federal Aviation Administration said Boeing had agreed to pay $6.6 million in penalties after the aviation regulator said it failed to comply with a 2015 safety agreement.

The penalties include $5.4 million for not complying with the agreement in which Boeing pledged to change its internal processes to improve and prioritize regulatory compliance and $1.21 million to settle two pending FAA enforcement cases.

“Boeing failed to meet all of its obligations under the settlement agreement, and the FAA is holding Boeing accountable by imposing additional penalties,” FAA Administrator Steve Dickson said in a statement. Boeing, which paid $12 million in 2015 as part of the settlement, did not immediately comment.

Boeing engineers are working to determine the scope of inspections, including whether jets can be used as-is without a threat to safety, two people said. Boeing has not told airlines how many jets are impacted, another person said.

The FAA has been investigating instances of oversight lapses, debris left inside finished aircraft, and managers putting pressure on employees handling safety checks for the FAA, people familiar with the proceedings said.

For example, in August 2020, Boeing told to the FAA about the flaw involving structural wrinkling in the interior fuselage skin where carbon-composite barrels that form the plane’s lightweight body are melded together.

But the defect went unnoticed for months or longer because computerized safeguards that crunch data looking for quality flaws had not been programmed to look for the gaps, a third industry source said.

DELIVERY TARGET

The 787 production problems have halted deliveries of the jet since the end of October, locking up a source of desperately needed cash for Boeing.

The fuel-efficient 787 has been a huge success with airlines, which have ordered 1,882 of the advanced twin-aisle jet worth nearly $150 billion (74.7 billion pounds) at list prices.

But the advanced production process and sprawling global supply chain caused problems over the years.

As of February, Boeing had fixed the 787 production process causing the wrinkling defect, according to two people familiar with the matter.

However, planes rolled off the assembly line with the flaw for more than a year, at least, continuing even after the flaw was discovered in August 2020.

“It’s difficult to see a definitive fix that is agreeable by the aviation authorities and all going forward,” Boeing customer Air Lease Corp’s CEO John Plueger told analysts on an earnings call Feb 22. “I don’t think that we’re there yet.”

Boeing has been working on the fuselage problem, and two additional potentially hazardous defects that arose since 2019, as it charted plans to consolidate final assembly of the 787 in South Carolina starting next month, at a sharply reduced rate of 5 787s per month.

One senior supply chain source said they will have to cut rate again.

Boeing said last month it expects to resume handing over a small number of 787s to customers later this quarter.

It has an ambitious internal plan to deliver 100 of the jets this year, one person said. Analysts say deliveries are not expected to recover to 2019 levels until at least 2024.

‘OPEN-HEART SURGERY’

But before any jet is delivered, it must go through invasive inspections and costly repairs.

First, technicians must pull out the passenger seats, open up the floor paneling and use specialty tools to measure whether defects invisible to the naked eye are present, according to three people with direct knowledge of the process.

The repair work – already underway at Boeing factories in Everett, Washington and North Charleston, South Carolina – is even harder.

In the bowels of the jet, technicians have to remove multiple specialty fasteners on both sides of the inner fuselage skin, then install newly produced “shims” that fill out gaps and remove the structural dimpling. Workers then replace all the fasteners, re-paint, and re-install the interior, they said.

“It’s like open heart surgery,” one of the people said. “They’ll be retrofitting the fleet for potentially several years.”

(Reporting by Eric M. Johnson in Seattle; Additional reporting by Tim Hepher in Paris, David Shepardson in Washington, and Tracy Rucinski in Chicago; Editing by Nick Zieminski)

Continue Reading

Business

On a retro style milk truck, London entrepreneur chases a ‘zero waste’ future

Published

on

On a retro style milk truck, London entrepreneur chases a 'zero waste' future 2

By Natalie Thomas

LONDON (Reuters) – Heralded by the whirr of its underpowered electric engine and the clink of bottles stacked in crates on the back, Ella Shone’s ‘Topup Truck’ started life ferrying morning milk to the doorsteps of bleary-eyed Londoners.

Twenty years on, and the light vehicle known as a ‘milk float’ – once a ubiquitous sight on British streets – is enjoying a second career selling a range of goods and serving the 32-year-old’s quest to rid the city of single-use plastic.

“The fact that I’m driving around in a milk float does a lot for raising awareness in the local area,” said Shone, wearing a black beanie during her rounds in the borough of Hackney last week. “So now I’m operating at almost full capacity.”

Furloughed from her sales job during the coronavirus pandemic last spring, Shone used savings to start her new business, aiming to meet growing demand for household goods free of the plastic packaging used in supermarkets.

Customers book a visit from the ‘Topup Truck’ online and then purchase goods such as lentils, pasta, olive oil, shampoo or washing up liquid using their own containers.

From a low base a decade ago, the market for such unpackaged bulk goods could hit at least 1.2 billion euros ($1.5 billion) by 2030 in the European Union, according to a report https://zerowasteeurope.eu/wp-content/uploads/2020/06/2020_06_30_zwe_pfs_executive_study.pdf by Zero Waste Europe, an anti-waste network.

While handling the logistics can be a challenge, Shone calculates that her service has eliminated the need for at least 12,700 pieces of plastic since it launched in August.

Planning a crowdfunder to retrofit her milk float to enable her to serve a greater range of products to more communities, Shone hopes her novel approach will inspire others to find creative ways to tackle waste.

“If we want to have real change, it has to be a collective effort,” she said.

($1 = 0.8218 euros)

(Writing by Matthew Green, Editing by Rosalba O’Brien)

 

Continue Reading

Business

Lufthansa adds more summer holiday destinations in bet on recovery

Published

on

Lufthansa adds more summer holiday destinations in bet on recovery 3

BERLIN (Reuters) – Lufthansa is adding more holiday destinations to its summer flight schedule from Germany in anticipation of a strong rebound in bookings, it said on Thursday, betting COVID-19 vaccines and testing will soon make vacation travel possible.

Germany’s largest airline said it was planning to add around 20 new destinations from Frankfurt and 13 from Munich to locations such as the Caribbean, the Canary Islands and Greece.

COVID-19 vaccines and testing, along with strict hygiene rules at airports and on planes, will be prerequisites for travel this summer, it said.

“We expect many countries to relax travel restrictions towards the summer as more and more people have been vaccinated,” Lufthansa board member Harry Hohmeister said in a statement.

Hohmeister said the airline, which secured a 9 billion euro ($11 billion) state bailout last year, expects a sharp increase in demand once restrictions are lifted.

Concerned about more transmissible coronavirus mutations, many European Union countries have reinstated border controls in what is normally a passport-free travel zone.

“There is a great yearning for travel and we believe that the summer months will reflect this,” Hohmeister added.

In Britain, holiday bookings soared this week after the government laid out plans to gradually relax coronavirus restrictions, giving battered airlines and tour operators hope that a bumper summer could come to their rescue.

Plans for relaxing coronavirus travel restrictions have not been announced yet in Germany. Chancellor Angela Merkel is due to discuss lockdown options with the head of the regional governments next Wednesday.

Lufthansa, which said in January it was losing a million euros every two hours, is due to publish its fourth quarter results on March 4.

($1 = 0.8187 euros)

(Reporting by Riham Alkousaa and Ilona Wissenbach. Editing by Mark Potter)

Continue Reading
Editorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.

Call For Entries

Global Banking and Finance Review Awards Nominations 2021
2021 Awards now open. Click Here to Nominate

Latest Articles

Newsletters with Secrets & Analysis. Subscribe Now