Turkish Airlines in talks with Boeing to purchase 225 aircraft

Turkish Airlines is in talks with Boeing for an order of 150 737 Max narrow-body jets and 75 787 wide-bodies, with a final decision dependent on negotiations for engine prices, Reuters reports, citing statements by Chairman Ahmet Bolat on the sidelines of the recent IATA conference in Dubai.

What's the hold up? A final decision on the order will come down to price negotiations with the 737 Max’ sole engine provider CFM, the newswire writes. Turkish Airlines has submitted a counter offer to CFM and is awaiting a response, Bolat said. “We could announce the Boeing order earlier but there is an engine issue. A decision depends on CFM's prices and that is why it will take a little longer,” he said. Despite talks with Boeing reaching an advanced stage, Airbus has not been definitively excluded from the competition for the new orders, Reuters explained. Unlike Boeing’s 737 Max, Airbus jets can be powered by either CFM or Pratt & Whitney engines, Bolat explained.

REMEMBER: Turkish Airlines placed an order with Airbus for 220 new jets back in December of last year, with the landmark transaction set to be valued in the tens of bns USD, the carrier said.

Why is the carrier going with an Airbus and Boeing mix? Turkish Airlines is looking to cap risks by diversifying its supplier base as it ramps up plans to grow its fleet to 810 aircraft in ten years, up from 455 today, Bolat said. “We know the position of Airbus, we know the price, the selling conditions and also the slots. We will go with whichever one gives the slots, prices and also the engine is very important,” the Turkish Airlines chief added.

Turkish Airlines still has faith in Boeing: Despite the US planemaker undergoing a series of crises as of late, beginning with a mid-flight panel blow out on an Alaska Airlines operated 737 Max in January, Bolat retains his confidence in the US-based aviation giant and believes it is taking “strong steps and measures” to rectify problems.