Boeing Nears Deal to Secure Turkish Airlines Order for 150 737 MAX Jets

Post by : Saif

Boeing is close to finalising a delayed order for 150 737 MAX aircraft from Turkish Airlines after a dispute over engine maintenance threatened to derail the agreement.

Four people familiar with the matter said negotiations between the airline and engine maker CFM have moved forward, putting the Boeing order back on track. Three of the sources said the deal could be signed as early as next week.

The 150 aircraft are part of a broader package involving 225 Boeing jets that was announced after Turkish President Recep Tayyip Erdogan met US President Donald Trump last year.

Engine Maintenance Dispute Delayed the Order

Disagreement over the cost and terms of long-term engine maintenance had held up the 150-jet portion of the deal.

Turkish Airlines had previously threatened to cancel the Boeing order and consider Airbus aircraft if an agreement with CFM could not be reached. The dispute focused on how the airline and engine manufacturer would share the financial risks associated with future engine repairs.

CFM International supplies engines for Boeing's 737 MAX and is jointly owned by GE Aerospace and France's Safran.

Airlines around the world have been facing supply-chain problems and higher prices for aircraft spare parts. As a result, carriers are increasingly negotiating long-term engine maintenance agreements alongside aircraft purchases.

Read more: New Airbus Commercial Chief Pledges Focus on Production and Supports Bigger A220

Turkish Airlines Sought Greater Engine Maintenance Access

Industry sources said Turkish Airlines had also sought to establish its own engine maintenance facility for engines used on the 737 MAX.

The proposed facility would allow the carrier to become a higher-level CFM maintenance partner and gain faster access to newer repair technologies. It remains unclear whether the airline and CFM have reached a final agreement on the proposed facility.

The maintenance dispute became public last year when Turkish Airlines raised the possibility of switching some aircraft orders from Boeing to Airbus.

GE Aerospace CEO Larry Culp later defended the company's pricing approach, saying its prices reflected the value of the services provided to customers.

Turkish Airlines Continues to Expand Its Fleet

Turkish Airlines operates a fleet of more than 400 Boeing and Airbus aircraft and has been expanding its operations through its Istanbul hub.

The carrier is continuing to examine additional aircraft purchases as it prepares for further growth.

Senior Turkish Airlines executive Okan Bas said the airline was considering several aircraft options at an industry conference. These include regional aircraft such as the Embraer E2 and Airbus A220, as well as larger wide-body jets such as Boeing's 777X and Airbus' A350-1000.

Boeing Order Could Be Signed Soon

A completed agreement for the 150 737 MAX aircraft would secure a major Boeing order that has faced months of uncertainty.

The deal is also significant because it follows a high-profile announcement involving the US and Turkish governments. Any further delay or cancellation could have affected Boeing's relationship with one of the world's major international airlines.

For Turkish Airlines, resolving the engine maintenance issue would clear a key obstacle to its planned fleet expansion. For Boeing, completing the agreement would preserve the 150-aircraft portion of the larger order and strengthen its position with the rapidly expanding Istanbul-based carrier.

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