Boeing’s Massive Order At Risk

In the coming weeks, Boeing will undergo significant negotiations over a massive aircraft deal that has been at risk of cancellation.

Turkish Airlines, which is planning to take on 150 of the 737 MAX jets from the American planemaker, has been frustrated by engine negotiations in recent months.

Now, the airline will make the trip to meet with Boeing and the engine supplier, CFM, to try to push discussions in the right direction and finalise the deal and move it towards delivery.

Speaking in an interview, the airline’s Chairman, Ahmet Bolat, said that the talks between the three companies remain ongoing and that, in the coming weeks, a simple question will be put forward: whether CFM are in or out. If out, a chapter will be turned.

Boeing To Lose Order?

The threat of a chapter being turned directly relates to previous comments by the airline about what it would be forced to do if it were unable to secure terms with CFM and/or Boeing regarding the engine placement.

For Turkish Airlines, it was of the opinion that if it were unable to secure a deal for the 737, it would switch to rival manufacturer Airbus, in what would be a dramatic shift and a big loss for the American planemaker.

Much of Turkish Airlines’ concerns relate to the ongoing engine supply chain problems, which have led to shortages around the world and also increased prices of existing units, making negotiations all the more challenging industry-wide.

Boeing aircraft are not the only equipment being impacted; Turkish Airlines also flies Airbus aircraft, and it has been affected by Pratt & Whitney constraints on these planes as well.

However, at least for this order, Turkish Airlines does feel it has greater choice thanks to the engine suppliers over at Airbus, which makes this, at times, a genuine possibility of being ordered in a swap.

At the time of this reporting, onlookers felt that Turkish Airlines’ comments regarding CFM International were, above all, a threat to get the engine manufacturer to the table alongside Boeing to get a deal over the line.

Turkish Airlines has reaffirmed its stance that it does not want to be forced to switch to Airbus, as the complications of such a switch would be colossal. As a result, it will do everything in its power to secure a deal with CFM.

The Turkish Airlines Order

Turkish Airlines’ deal for the 737 MAX was long rumoured and was finally confirmed in September through an announcement, a move that means the business will rely more heavily on Boeing moving forward.

The company’s confirmation involved a significant order, with the purchase of 150 more Boeing 737 MAX jets, marking one of the largest orders and a significant expansion of single-aisle capacity moving forward.

The landmark purchase from the airline also aligns with the previously announced plans to grow and become one of the world’s largest airlines. As part of that growth, the airline hopes to reach a fleet of 800 aircraft by 2033; therefore, deals such as this one with Boeing are essential.

Turkish Airlines’ timeframe of 2033 aligns with the 2033 vision. This vision aims to support growth from Istanbul and neighbouring markets, not just by bringing more people to the country, but also by extending connectivity across the country, harnessing onward connectivity, as seen in the Middle East.