737 MAX Order Cancellation?

A sizeable order for Boeing 737 Max aircraft could be at risk of cancellation following fresh comments.

Turkish Airlines’ deal for the Boeing single-aisle is now facing fresh concerns following the airline’s Chairman, Ahmet Bolat, confirming ongoing complications with the finalisation of contracts for engines.

Key engine supplier CFM International is preventing the deal from moving ahead, with the airline’s Chair speaking with Reuters during the middle of the week and saying that this provider needs to put forward terms that are mutually beneficial.

Only if negotiations can progress in terms of costs will the Boeing deal progress; however, if progress does not increase at the desired speed and a new agreement cannot be reached, a switch will likely occur.

Turkish Airlines reportedly has a greater choice thanks to Airbus’ engine suppliers, which makes the possibility of switching its aircraft order a genuine reality.

Additionally, some analysts view these comments as a threat to CFM to secure a deal with the engine supplier, thereby ensuring the 737 MAX order can proceed.

While, therefore, the possibility of a deal not occurring remains a genuine chance, it’s still likely that Turklish Airlines’ order for 737 MAX will go ahead as the airline looks to advance its fleet in the coming years.

Turkish Airlines’ 737 MAX Deal

Turkish Airlines’ deal for the 737 MAX was long rumoured and was confirmed in a recent announcement in September, with the carrier growing its reliance on Boeing for future fleet needs.

The company’s confirmation of its intent to purchase 150 more MAXs would result in this being the largest single-aisle order Boeing has ever placed, significantly elevating the airline’s capacity and network in the coming decades.

The landmark purchase from the airline also aligns with the previously announced plans to grow and become one of the world’s largest airlines, which involves the fleet reaching 800 aircraft by 2033.

Turkish Airlines’ timeframe of 2033 aligns with the 2033 vision, which was previously announced to support growth from Istanbul and neighbouring markets, not just bringing more people to the country, but also through the country, harnessing onward connectivity, as seen in the Middle East.

The contract was also considered part two of an existing push by the airline to grow the fleet, the first part involving Airbus aircraft, with the second seemingly always to be Boeing’s to lose.

While fleet diversification can sometimes be frowned upon for airlines, as it may lead to a lack of simplification if not executed correctly, there are also considerable benefits to be had.

For Turkish Airlines, the deal with Boeing enabled it to acquire aircraft sooner than it would have with Airbus. If it had put all its eggs in one basket, this was driven by the lack of availability across the A320neo family, especially the A321neo.

Turkish Airlines’ Airbus Order

The talk of Turkish Airlines’ Airbus order came a couple of years ago and saw the airline acquire 220 jets from the planemaker.

As part of its mission to expand its fleet, the airline has announced that it’ll acquire 150 A321neo aircraft, Airbus’s best-selling model, this year.

Meanwhile, a commitment to the A350 series was extended, comprising 70 units across three variants. Included were acquisition plans for 50 A350-900s and 15 A350-1000s, and for its Turkish Cargo division, it will receive 5 A350 Freighters.

With the arrival of the new aircraft, the company stated that it aimed to eventually expand its passenger network to over 400 destinations, carrying 170 million people annually by 2030.

To make all these routes, aircraft and expansion possible, the airline also expects to employ 150,000 across its mainline brand and all subsidiaries.