Air transportation in Turkey as sector has grown considerable in the last 20 years. This growth is linked with the liberalization of the sector in 1983. In European Union under the auspices of single market, a similar liberalization movement started in late 1980' s, which ended up with the creation of European Common Aviation Area. Both markets showed considerable growth and air transportation is now the main mode of transportation between Turkey and European Union. I have aimed to compare the aviation sectors of both Turkey and European Union including the overall transportation policies, in order to evaluate the competitiveness Turkish civil aviation sector after a possible integration of European Common Aviation area. In this research, I have interviewed European Union officials, civil aviation sector' s executives and researched European Union and Turkish government documents. I have reviewed literature on air transportation economics and marketing. Turkish aviation sector is competitive in international markets but displays monopolistic character in domestic and some international markets. European Common Aviation Area is much more competitive and spots, where monopolistic situation do exist, are limited. Overall aviation policy of European Union is coherent but there are major gaps. In Turkey, such policy does not exist including a master transportation policy. Also access to capital markets poses a barrier for Turkish aviation sector. Overall, Turkish air transportationIV sector could be in a competitive position in or against European Common Aviation Area, provided that a master transportation policy is created and the issues relating to capital is resolved.

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