July 13, 2024

Turkish Airlines in Talks with Boeing for 225 Jets Amid Engine Price Negotiation

Turkish Airlines is in advanced talks with Boeing for 225 aircraft, but the deal’s finalization hinges on engine price negotiations with CFM, impacting the airline’s expansion plans.

Turkish Airlines

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Turkish Airlines is advancing its discussions with Boeing to acquire 150 737 MAX narrow-body jets and 75 widebody 787 planes. However, finalizing the deal depends on successful engine price negotiations with CFM, the sole provider of engines for the 737 MAX, Chairman Ahmet Bolat revealed on Tuesday.

Turkish Airlines announced it was in talks with both Airbus and Boeing to purchase 235 aircraft as part of its expansion strategy, having previously ordered 355 jets from Airbus in December. While discussions with Boeing are progressing, Airbus remains a contender, with the decision ultimately hinging on engine pricing and production slot availability.

“We could announce the Boeing order sooner, but there is an engine issue,” Bolat stated at the International Air Transport Association’s annual meeting in Dubai. He explained that the airline has proposed a counteroffer to CFM, a joint venture between GE and France’s Safran, and is awaiting a response.

For Airbus’s narrow-body planes, Turkish Airlines has the option to choose engines from either CFM or Pratt & Whitney. The ongoing negotiations come as Boeing faces a significant safety crisis, exacerbated by a mid-air panel blowout on a near-new 737 MAX plane in January, and is under scrutiny by U.S. regulators.

Jet Engine
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Despite these challenges, Bolat expressed confidence in Boeing’s ability to resolve its issues, noting that the company is taking “strong steps and measures.” He emphasized the importance of diversifying their fleet by using products from both Boeing and Airbus to mitigate risks.

Turkish Airlines aims to expand its fleet from 455 to 810 planes within the next decade. Bolat stated that the decision would be based on available production slots, pricing, and engine considerations. “We want to mitigate the risks by using both products available in the market,” he added.

With a strategic focus on securing production slots and favorable terms, Turkish Airlines continues to navigate complex negotiations to support its ambitious growth plans.

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