Turkish Airlines Faces Boeing Order Delays
Turkish Airlines’ highly anticipated aircraft order from Boeing may be delayed by as much as six months due to unresolved contract terms and delivery schedule issues. CEO Bilal Eksi revealed that production slot availability at Boeing and escalating engine maintenance costs with General Electric remain significant hurdles, potentially extending the finalisation of the deal beyond the originally planned mid-2023 timeline.
At a recent event in London for the launch of the newly expanded Turkish Airlines Holidays, Eksi candidly addressed the uncertainties surrounding the order. “Frankly, we haven’t finalised yet. This means that we cannot find the reasonable level yet,” he told Bloomberg, emphasizing that the airline’s decision would ultimately be guided by the need to secure favourable terms. Eksi’s remarks came amidst ongoing discussions that began in mid-2023 when Turkish Airlines floated a potential mega-order split between Boeing and Airbus.
The airline aims to purchase approximately 300 jets from Boeing, including popular models such as the B737-8 and B787. However, the current challenges are prompting some reconsideration of options. While negotiations continue with Boeing, Eksi noted that Turkish Airlines is open to choosing Airbus if it can offer more attractive terms. This flexibility highlights the competitive landscape of the aviation market, where manufacturers vie to secure large-scale orders from one of the world’s leading flag carriers.
Turkish Airlines’ ambitions extend well beyond this single order. As part of its “100th Anniversary Strategy,” the airline plans to double its fleet to 800 aircraft by 2033. Currently operating 438 aircraft, with 254 Airbus and 184 Boeing models according to ch-aviation fleet data, the carrier is actively managing its growth strategy. This includes leasing additional aircraft to meet demand in the event of delivery delays from both Boeing and Airbus.
The airline’s current fleet expansion strategy also involves subsidiary AJet, which operates 16 aircraft that Turkish Airlines consolidates into its overall fleet planning. In addition, Turkish Airlines has recently signed dry-leases for ten B737-8s scheduled for delivery in 2025 from DAE Capital. With an existing fleet that includes 27 B737-8s, five B737-9s, and 23 B787-9s, the airline continues to build a robust portfolio that caters to diverse travel needs.
In parallel with these developments, Turkish Airlines finalised an order with Airbus in December 2023. The Airbus deal includes 220 firm orders with an additional 125 on option, covering a range of aircraft from the A350 family to the A321neo series. Combined with earlier orders announced in September 2023, the total number of aircraft under the Airbus agreement stands at 355, with 230 firm orders. This dual-sourcing strategy underscores Turkish Airlines’ commitment to maintaining a balanced and versatile fleet.
As Turkish Airlines navigates the complexities of securing its Boeing order, the company remains focused on long-term growth and operational excellence. The delays, while challenging, have not dampened the airline’s determination to expand its fleet and maintain its competitive edge. With potential shifts toward Airbus if necessary, the carrier is actively weighing its options to ensure that it meets its strategic targets and continues to offer top-tier service to its customers.
This latest development in the aircraft order saga is a reminder of the challenges inherent in large-scale procurement in the aviation industry. As Turkish Airlines works to resolve these issues, industry watchers remain keenly interested in the final outcome and its implications for the global aviation market.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com