Turkish Airlines is planning to spin off its regional operation AnadoluJet to boost its growth potential.

Speaking at an International Air Transport Association conference in Istanbul, Turkish Airlines chairman Ahmet Bolat said AnadoluJet’s occupancy levels stood at 90%, compared with around 80% for the group as a whole.

The new business would initially be 100% owned by Turkish Airlines – in which the state has a 49% stake – and  Bolat said that spinning it off would make it easier to raise funds through a future stake sale or listing.

AnadoluJet was founded in 2008 and operates a fleet of 63 single aisle aircraft including more than 50 Boeing 737-800s, and 737 Max jets originally destined for Russia’s S7. It also operates Airbus A320neos.

Serving mainly domestic destinations out of Sabiha Gökçen airport, Bolat said expansion plans would see more routes to European cities being served.