INTERVIEW-UPDATE 2-Turkish Airlines targets over $5 bln sales

* Targets 20 percent European market share by 2012

* Expects 19 wide-bodied planes to enter fleet by 2010-11

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By Ayla Jean Yackley and Tolgahan Ozkan

ISTANBUL, June 25 (Reuters) - Turkish Airlines (THYAO.IS) expects sales to grow more than 6 percent to above $5 billion this year as it expands its fleet to grab market share from European rivals, Chief Executive Temel Kotil said on Thursday.

Europe's fourth-biggest airline by passengers expects its market share there to increase to 10 percent next year and 20 percent in 2012 from 8 percent now, Kotil said in an interview. Europe is home to nearly half of the world's airline traffic.

While global air traffic has slowed amid the economic downturn, Turkish Airlines expects a slight increase in passengers in the first half of 2009 and is aggressively increasing capacity to benefit from its hub in Istanbul, astride Europe, the Middle East and North Africa.

"We are already utilising our fleet very effectively in this region," Kotil said. "Our growth policy now is based on becoming a global player."

"Turkish Airlines is ensuring that growth organically, especially through ... the fleet expansion," he said.

The one expansion overseas Turkish Airlines is considering is a possible partnership with Kyrgyzstan's new flag carrier, Kotil also said. It signed an agreement with the Kyrgyz government to study a possible joint venture in May.

The state-run airline expects 19 wide-bodied planes to enter its fleet by 2010-2011, Kotil said. It has already doubled the number of seats on long-haul planes over the last two years.

Turkish Airlines is looking at opportunities to buy more planes at lower prices beyond the planned purchase of up to 105 planes from Airbus (EAD.PA) and Boeing (B.N), which it previously announced. Its fleet will reach 132 aircraft this year, 30 percent of which are wide-bodied planes, he said.

Kotil said the company expects 2 million transit passengers in 2009 out of a total 26.5 million in markets it serves and for more than half of all passengers to fly international routes.

Nine million passengers traveled with the airline in the first five months of 2009, and that number may reach 13 million or more by the end of this month, he said. Twelve million flew Turkish Airlines in the first half of 2008.

It has more than doubled its passenger numbers in the past five years.